Career Moves That Can Cost Women Over $1 Million

Everyday decisions related to pay, promotions and career breaks may seem minor in the moment, but they can significantly reduce a woman’s financial potential over time. These small choices may lead to more than $1 million in lost earnings and retirement savings over the course of a career.

Australia’s gender wealth gap often stems from patterns in negotiation, promotions and career planning. While some decisions are deeply personal, such as taking time away from work to care for family, others like not asking for a pay rise are often influenced by societal expectations. In many cases, these decisions are not due to a lack of skill or ambition, but rather a culture that values patience more than self-advocacy.

Accepting a lower starting salary without negotiating can have a lasting impact. For instance, missing out on just $8,000 at the beginning of a career can eventually lead to over $450,000 in lost income and super contributions over 30 years, even with modest wage increases. Relying solely on being recognised without attending regular pay reviews can also be costly. In some instances, it may result in a lifetime income shortfall exceeding $1.2 million.

Turning down promotions can have significant financial consequences as well. If a woman declines a leadership position at age 35 that comes with a $15,000 salary boost, it could mean missing out on more than $760,000 in lifetime earnings. Promotions impact more than current pay. They shape future opportunities and long-term earning potential.

Caregiving responsibilities add another layer to the challenge. The majority of people who step away from paid employment to provide care are women. Taking a five-year break from work not only reduces immediate income but also affects superannuation. This pause can result in over $315,000 in lost retirement savings, showing how time out of the workforce has long-term financial implications.

Freelancers and consultants face other hidden financial risks. Research indicates that 60% of women in these fields undercharge for their services. This often comes from a reluctance to negotiate higher rates. Even charging $20 less per hour than the market rate can reduce lifetime earnings by more than $1 million once workload and wage growth are taken into account.

While better public policy and improved workplace systems remain essential, the impact of everyday career decisions should not be overlooked. Gaining confidence in pay discussions or being open to new opportunities can build financial security over time. Although the burden of addressing inequality should not fall solely on women, reclaiming key moments in a career can create meaningful change.

Source: The Australian, Morningstar Australia, Australian Government – Status of Women Report Card 2025

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