The unique impacts of financial hardship on women

The unique impacts of financial hardship on women

Financial challenges are something most people will experience at some point in their lives. Rising costs, job transitions, unexpected or emergency expenses — these are the kinds of pressures that don’t discriminate.

However, the reality is that financial hardship impacts everyone differently.

For many women, financial strain comes with an added layer of complexity. It’s shaped by considerations that include career decisions and patterns, caregiving responsibilities, long lives, as well as income gaps. These factors can make it harder to recover from financial setbacks. It also makes long-term planning more difficult.

Understanding these unique impacts is the first step toward building financial resilience. So, let’s get into it.

The peaks and valleys of women’s income

While many men experience a relatively steady rise in income throughout their careers, women tend to experience peaks and valleys.

Caregiving

Caregiving plays a major role. Women are significantly more likely to step away from the workforce to care for children or aging family members. As per a 2023 Statistics Canada report, 32 percent of women looked after or provided unpaid care to children and just under a quarter (23 percent) provided unpaid care to adults with long-term conditions or disabilities.

Due to the nature of caregiving, some of these women find themselves in a place where they need to pause their career. This could look like reducing hours, a leave of absence, or even stepping away entirely.

Over time, these interruptions can impact everything from salary growth and promotions to retirement contributions, day-to-day expenses, and debt accumulation.

Shifting tracks

Even when women remain in the workforce, they may take on more flexible or less demanding roles to balance their professional and family responsibilities. While these choices can be necessary and practical, they often come with long-term trade-offs that lead to lower lifetime earnings.

Early plateaus

Many women may see their income plateau earlier in their careers. Due to fewer opportunities to advance into upper management, women’s career progression tends to stall when they're in their early 40s.

The emotional cost of financial stress

Financial stress is never easy to navigate. But for many women, the impact goes far beyond the numbers.

Studies, like nudge’s 2025 Global Financial Wellbeing Report, show that women experience a higher emotional toll from their financial worries than men do. More than half (55 percent) of women say their debt impacts their stress levels. And 12 percent report feeling ashamed, anxious (16 percent), or angry (12 percent) about their financial situation.

For some, this stress can show up physically. Financial anxiety can disrupt your sleep, or lead to fatigue, headaches, and other health issues.

When you finances feel uncertain, it can impact nearly every aspect of your daily life. From relationships to your workplace performance, money stress can have a long reach.

The structural challenges

Despite progress in recent years, Canada’s gender wage gap remains a reality. In 2022, Statistics Canada reported the gender wage gaps was 16.3 percent. That means that women earned 84 cents for every dollar earned by men. This gap grows even wider for many racialized and Indigenous women.

Lower income over the course of a career means less opportunity to save, invest, and build financial security. At the same time, many are balancing the financial responsibilities that come with supporting families and managing households.

These factors can make it more difficult to build savings or recover quickly from financial setbacks.

The retirement conundrum

 One of the biggest financial challenges women face happens later in their life.

Women often live longer than men. And while longevity is something to celebrate, it also means your retirement savings need to stretch further.

Plus, when you take into consideration a women’s relatively lower lifetime earnings and career interruptions, women often enter retirement with smaller savings. This creates what a double whammy: the need for more retirement savings while having fewer opportunities to build them.

On a more positive note

Now for the good news: Women have been taking steps to improve their financial resilience.

According to the Financial Resilience Institute’s 2023 study, the Financial resilience and financial wellness gender gap report, 33 percent of women had met with a financial advisor or planner as of June 2023. Nearly half (48 percent) have taken steps to improve their financial literacy.

These shifts are helping more women strengthen their financial foundations and feel more confident about their futures. Being able to make long-term plans not only helps you manage your money, it also helps create stability, flexibility, and opens you up to more opportunity.

Start the conversation today

With the right support, women can effectively navigate their financial challenges and build lasting financial resilience.

If you’re struggling to gain control of your finances, consider seeking practical guidance from our knowledgeable advisors. Reach out today to schedule a free, confidential consultation.