Five career choices that can cost women up to $1m in lost earnings and wealth
It’s rarely a single big decision that derails women’s financial progress.
More often, it’s the many small moments: a hesitation here, a polite acceptance there, a sidestep around the uncomfortable. A glance away in a meeting, a quiet “thank you” instead of a counter and the belief that waiting is safer than asking.
Some will say this is human behaviour and not a woman’s burden. The data tells a different story.
Women’s patterns of under-asking, under-charging and under-claiming are not quirks of personality. They are the generational residue of being told to be grateful, patient and agreeable.
But over a working life, these seemingly small choices can cost women up to $1m in lost earnings and wealth.
1. The negotiation moment
Women are less likely to initiate negotiations. It’s a familiar story.
Imagine you are offered a new role, and the salary comes in $8000 below what was advertised. You are disappointed, but you accept. You convince yourself it’s a good opportunity. And besides, you don’t want to seem difficult, ungrateful or risk the offer being withdrawn.
That $8000 gap may feel small in the moment, but it sets the baseline for all future raises and super contributions.
Compounded annually, using Australia’s current 3.4 per cent wage growth, that initial gap widens year by year. Over a 30-year career, this single unchallenged offer conservatively translates into a loss of more than $400,000 in earnings and about $50,000 in superannuation.
2. Not asking for regular pay increases
Women often approach pay increases differently. It is not due to ability, but because they are more conditioned to wait for recognition, believing hard work alone will lead to advancement and rewards.
This tendency means women hold back in pay discussions, missing opportunities to set a higher benchmark for their earnings. Suddenly, one year becomes three, or worse, 10. Yes, it happens.
For instance, accepting no increase for three years, on a $100,000 salary, isn’t just a $3400 or even a $10,200 shortfall. Over a 30-year period, and applying 3.4 per cent wage growth, that seemingly inconsequential decision not to “push” for more becomes a seismic $450,000.
As for 10 years of “no ask”, it’s the jackpot, ticking beyond the million-dollar mark at just over $1.2m.
3. Saying ‘No’ to promotions
LinkedIn data shows women apply for 20 per cent fewer jobs than men and are 16 per cent less likely to apply after viewing them.
Additionally, research from the University of Melbourne highlights that many women are less likely to pursue leadership roles. Declining a promotion with a salary increase of $15,000 at age 35 easily converts to more than $760,000 in lost future earnings by retirement.
Further, promotions aren’t just title changes; they reposition your entire career trajectory. Saying no might seem small and of little consequence at the time. However, due to assumptions around long-term career intent, that one decision quietly stalls future advancement opportunities.
4. Super hit from time off for caring
Stepping away from work for caregiving responsibilities is a deeply personal choice. Yet, it comes at a cost and a weight women are far more likely to carry.
Ninety-four per cent of those who leave the workforce for caring duties are women, with the career gap spanning three to five years.
Delays of contributions to superannuation, even by five years, can significantly reduce retirement savings.
Using the 12-month average annual return to March 2025 of 5.9 per cent, based on average annual earnings of $98,618, shows $315,125 in lost superannuation by retirement.
5. Undercharging in consulting or freelance work
Women own about one-third of Australia’s small businesses and represent a significant share of the freelance and consulting workforce. Yet, studies show 60 per cent of women in freelance or consulting work knowingly undercharge, citing discomfort with asking for higher fees.
The financial cost? It might seem small in the moment, but it builds, limiting profitability, long-term wealth creation and business growth.
An amount of $20 less per hour for 20 hours a week over 30 years results in more than $620,000 in lost income. And when we factor in modest wage growth of 3.4 per cent, suddenly those figures turn to just over $1m.
Hesitating to negotiate or step into a bigger role creates a drag on your progress, slowing you down in ways that are hard to see until years later. Each conversation you start, each decision to value your contribution, helps build the momentum.
These decisions are not always made consciously. Nor are they the sole responsibility of women to fix in isolation. Systemic transparency, inclusive policies and fair pay structures matter. However, we must also note that taking ownership of one’s choices within the system is equally important. These micro-decisions are moments where agency can be reclaimed.
Roxanne Calder is a career strategist, the founder and managing director of recruitment agency EST10, and the author of Earning Power: Breaking Barriers and Building Wealth for Women.
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