Wealth building for women in dentistry: Unlocking financial potential

Introduction

The landscape for female dentists is evolving rapidly. According to recent research conducted by Wesleyan Financial Services, two-thirds of female dentists are planning to change how they work in the next two years. However, alarmingly, 71% of them have not fully prepared for the financial impact of these changes.

This presents a significant opportunity — and challenge — for female dentists to rethink their financial strategies and unlock untapped potential for long-term wealth building.

A growing wealth gap

Women in dentistry face significant financial challenges, including a 15% disparity in pay on average compared to their male counterparts.* Several factors may contribute to this income gap, including patient demographics, contract negotiation habits, and unequal access to leadership opportunities.

The challenges faced reflect those seen in wider society. The gender investment gap in the UK grew by a staggering £54 billion between January 2023 and January 2024, reaching a total gap of £567 billion. According to Boring Money (an investment research house), men now have £1.01 trillion invested, compared to £450 billion for women.** This imbalance highlights an opportunity for female dentists to explore more strategic approaches to managing their finances and growing their wealth.

Interestingly, Wesleyan’s research indicates that female dentists are more focused on saving rather than investing — a trend consistent with broader patterns among women. The survey found that the top financial priorities for female dentists over the next 12 months are split between saving enough for retirement and growing day-to-day savings, each cited by 37% of respondents. While building a savings cushion is important, the prioritisation of cash-savings over investing could mean missing out on opportunities for long-term financial growth.

Women found to outperform men in investing

Warwick Business School (WBS) conducted a study of 2,800 UK men and women investing through Barclays’ Smart Investor over a three-year period, where women not only outperformed the FTSE 100 but also achieved better returns than their male counterparts.*** This suggests that, despite prioritising lower-risk savings vehicles, women have the potential to achieve strong investment performance when they do engage with the markets.

Female dentists, therefore, have a unique opportunity to build wealth by exploring a wider variety of savings and investment options. Understanding this shift and aligning it with personal and professional goals could be the key to greater financial security and independence.

That said, it’s important to be balanced when it comes to exploring investments and savings. The potential rewards of investing are greater than cash savings, particularly at times of low interest. However, investments expose you to the risks of the stock market.

Your investment could fall in value rather than grow, and it may fluctuate up and down on a regular basis over the short term.

Investments can go down as well as up, and you may get back less than you invest.

Shifting the mindset

While savings provide security, investments offer growth potential. Combining the two may create a more balanced and resilient financial foundation.

The WBS study demonstrates that women are capable investors who can outperform the market — and their male counterparts — when they engage with investing. The first step is exploring all the options available to maximise growth opportunities.

The value of financial advice

Despite opportunities available, only 3 out of 10 female dentists currently seek professional financial advice. This hesitation may stem from a lack of confidence or awareness about the benefits of working with a financial adviser. Yet, a tailored financial plan that reflects personal circumstances, professional goals, and risk tolerance can unlock significant value.

For instance, exploring goals as part of a comprehensive financial review can help female dentists identify the right course of action for their situation. This could involve striking a balance between saving and investing, how a long-term view can help to secure financial wellbeing in the future and managing cash flow during career transitions.

Dental specialist financial advisers can provide valuable insights into tax-efficient savings options, pension contributions, and investment strategies — all tailored to the unique financial profile of a dental professional.

Seize financial independence

With two-thirds of female dentists planning career changes in the next two years, now is the time to take control of financial futures.

The untapped potential for women in dentistry to build wealth is significant. The key lies in taking action — and now might be the right time to start.

Book an initial conversation with a dental Specialist Financial Adviser from Wesleyan Financial Services. Charges may apply. You will not be charged until you have agreed to the services you require and the associated costs.

Methodology

Findings are based on consumer research of 658 dental professionals (419 of which were female dentists), conducted by FMC on behalf of Wesleyan Financial Services between 9th July and 28th August 2024.

You can read the full report here.

* https://www.pkpi.uk
** https://www.ft.com
*** https://www.wbs.ac.uk