Women & Wealth

When it comes to money, women are making huge strides. We’re earning more, leading businesses, and building wealth in ways previous generations could only dream of. Yet one significant gap still remains: the investment gap.

Women, on average, invest significantly less than men, both in terms of participation and amounts invested. This isn’t just about money; it’s about opportunity, confidence, and long-term security. In this blog, we’ll explore why the gap exists, how to build confidence as an investor, and the strategies women can use to grow wealth with purpose. I’ll also share real-life success stories to show how change is not only possible, it’s happening.

Understanding the Investment Gap

Let’s start with the facts.

Research consistently shows that women are less likely to invest than men. According to a 2021 study by Fidelity UK*, only one in three women sees herself as an investor, even if she holds investments through a pension or ISA. Meanwhile, men are twice as likely to invest in the stock market. And when women do invest, they often start later and contribute less, typically due to income disparities, career breaks, or a lack of confidence in financial decision-making.

What causes the gap?

There’s no single cause, but several common threads include:

• Confidence, not capability: Studies show women are just as competent as men when it comes to managing money, yet they’re more likely to doubt themselves. Many women fear “getting it wrong” or feel they need to know everything before they begin.
• Financial literacy gaps: Girls and boys receive different financial messaging from a young age. Men are often encouraged to take risks, while women are told to save, not invest.
• Systemic factors: The gender pay gap, time out for childcare, and longer life expectancy all mean women typically have less to invest and need that money to last longer.
• Cultural norms: In many households, financial decision-making still skews male, leaving women with less experience managing investments directly.

But here’s the silver lining: when women do invest, they tend to outperform men. Studies from Fidelity*, and Warwick Business School** consistently show that women’s portfolios achieve higher long-term returns, often by 0.4% to 1.8% over 3 years. Why? Because women are more likely to take a patient, long-term approach, make fewer trades, and avoid impulsive decisions, three of the most powerful traits in successful investing.

The Cost of Not Investing

The impact of under-investing compounds over time. Let’s say you save £250 a month into a cash account with zero interest over 30 years, you’d have £90,000. But if you invested that same amount with a 6% annual return, you could have over £250,000. That’s a £160,000 difference, purely because of where you put your money.

The cost of caution is high. And in a world where women live longer, face higher care costs, and retire with smaller pensions, investing isn’t a luxury, it’s a necessity.

Building Financial Confidence

So how can women begin to shift their money mindset and feel empowered to invest?

1. Start with education, not perfection

You don’t need to be a financial expert to invest, you just need to understand the basics. Start by learning key investment principles: diversification, risk vs. reward, and the power of compounding. Follow credible sources, join women-focused finance communities, and ask questions without fear.

2. Know your goals

Investing isn’t about chasing the market, it’s about funding the life you want. Do you want to retire early? Buy a second home? Start your own business? Your goals will help you decide how much to invest and what level of risk is right for you.

3. Understand your risk profile

Risk isn’t a bad word. In fact, avoiding risk entirely (by keeping all your money in cash) is often the riskiest strategy of all, especially in inflationary times. Understanding your appetite for risk and how that might change over time helps you make decisions that align with your comfort and goals.

4. Start small, but start

You don’t need thousands to begin investing. Many platforms now allow you to start with as little as £25 or £50 a month. The key is consistency and time in the market not timing the market.

5. Work with an adviser you trust

A good financial adviser won’t just talk numbers, they’ll listen to your story, understand your values, and help you make confident, informed decisions. If you’re unsure where to start, don’t be afraid to seek professional guidance.

Smart Investment Strategies for Women

Whether you’re just starting or looking to grow your wealth more strategically, here are some core approaches to consider:

1. Make the most of tax-efficient wrappers

Use ISAs, Lifetime ISAs (especially for first-home buyers or retirement), and pensions to grow your wealth tax-free. Many women underuse pensions, especially when self-employed or on maternity leave, but these are incredibly powerful tools for long-term investing.

2. Invest regularly with pound-cost averaging

By investing a fixed amount monthly, you smooth out the ups and downs of the market. This approach removes emotion from the process and is perfect for building wealth steadily.

3. Diversify across assets and geographies

Spread your investments across different sectors, asset classes (shares, bonds, property), and regions to reduce risk. Women tend to be natural diversifiers, which works in their favour long-term.

4. Use ethical or values-based investing

More women are aligning their money with their values, investing in funds focused on sustainability, equality, or clean energy. This can help build an emotional connection to your portfolio while still targeting strong returns.

5. Keep costs low

Look out for fees. High charges can erode your gains over time. Consider using index funds or ETFs (exchange-traded funds), which typically have lower fees than actively managed funds.

Closing the Gap, One Step at a Time

The investment gap may be real, but it’s not permanent.

More and more women are reclaiming their financial power, learning to trust their instincts, grow their wealth, and speak confidently about money. And the more we talk, the more we normalise investing as a skill, not a gamble.

It’s time to stop waiting for the perfect moment or perfect knowledge. The best time to start investing was yesterday. The second-best time? Today.

Final Thoughts

If you’re reading this and thinking, “I should have started years ago…” please know you’re not alone. It’s never too late to build a better financial future. The key is to start where you are, with what you have, and take one intentional step at a time.

Let’s change the narrative. Let’s make investing a conversation women feel confident having, with each other, with advisers, and with themselves. Because when women invest, everyone benefits: families, communities, and the economy as a whole.

You deserve to be wealthy. You deserve to feel financially secure. And you absolutely deserve to be in the investment conversation.

If you’d like to learn more about how to start investing or want to explore what’s possible for your financial future, keep exploring the resources here or connect with a financial professional who understands your goals and values.

* Fidelity Investments. “2021 Women and Investing Study”.

**Warwick Business School, “Are women better investors than men?” June 2018