The gender investment gap: Why aren’t more women investing?

50 years have passed since the Sex Discrimination Act 1975 gave women in the UK vital financial freedoms, including the ability to take out loans without a male guarantor. And yet, half a century later, clear financial disparities still exist between men and women.

In 2025, Boring Money reported that 3.3 million more men were investing than women, amounting to a gender investment gap of around £678 billion.

The gap doesn’t seem likely to close any time soon. In fact, it grew for the second year in a row in the 12 months to March 2025, increasing by £1.2 billion.

The gender investment gap could be putting women at a financial disadvantage. Women are generally more likely to save than invest. Because stock markets having historically outperformed cash in the long term, a reluctance to invest could make it harder for women to achieve financial freedom later in life.

Read on to discover why the gender investment gap exists, how it could be closed, and how you can get started with investing for the first time.

Women are more likely than men to report a low risk appetite

Risk is undeniably a significant contributor to the gender investment gap. As reported by Reuters, 45% of women globally feel the stock market is too risky for them to feel comfortable investing.

Consequently, women may be more likely to put their money into savings, rather than investments. In fact, when asked what they would do with £1,000, Reuters reported that 41% of women said they would save it, compared to 31% of men.

However, while saving is generally regarded as the safer option, it isn’t risk-free. Stagnant interest rates can significantly inhibit how your money grows, while gradually rising inflation can diminish the value of your savings over time.

Despite share prices fluctuating, historically, global markets have trended upwards. As a result, long-term investments have generally outperformed cash savings.

Consequently, women could be losing out on substantial growth opportunities due to a low risk tolerance.

Many women feel they don’t have enough knowledge or confidence to invest

With just 1 in 10 women globally believing they fully understand investing, according to Reuters, a lack of knowledge is likely to play a crucial role in deterring women from the stock market.

Indeed, Reuters also reported that while 29% of women had traded or invested in stocks online, over half of those who hadn’t cited a lack of knowledge as the reason.

While digital investment platforms have made investing easier and more accessible than ever, understanding the various risks and options can still be challenging. What’s more, because women are generally more risk-averse, many will be wary of fake investment opportunities or making the “wrong” choices.

Seeking support from an independent financial planner could help you make informed decisions that are suited to your circumstances and risk tolerance. Working closely with you to understand your preferences, goals, and concerns, I can help you overcome knowledge gaps and invest with confidence.

Men are more likely to control household finances, meaning some women may lack the knowledge or opportunity to invest

In a 2025 study of two-adult households that had sought financial advice, Unbiased found that one partner managed household finances alone in 47% of cases. Of these, 7 in 10 were men, while just 3 in 10 were women.

What’s more, according to BBC News, in 2019 just 26% of women earned more than their male partners.

In households where men take the lead on finances or earn a higher salary, women may be less likely to get involved with investments – even if their money is invested and they benefit from the returns.

As such, if you’re a woman who is not actively involved in managing your household finances, you may be unaware of how to get started.

Studies show that women typically invest for the long term

Although women may be less likely to invest, they often exhibit behaviours and qualities that make them strong investors.

A Warwick Business School (WBS) study of 2,800 investors found that female investors not only outperformed the FTSE 100 over a three-year period, but their returns were also 1.8% higher than male investors.

The analysis identified two key differences in how women invest compared to men.

Prioritising long-term returns over short-term gains

In general, women were found to invest for the long term, trading nine times a year on average, compared with 13 times for men. By staying the course through downswings, rather than selling when values drop, investors have historically seen steady growth.

Additionally, WBS suggested that male investors are more likely to sell shares that have increased in value to secure a positive return. As a result, women may achieve higher growth by holding high-performing shares for longer.

Lower risk tolerance when choosing investments

Women’s lower risk appetite can often lead them to make fewer speculative investments than men. According to Boring Money, just 20% of women are comfortable taking on a lot of risk, compared to 44% of men.

As a result, women may be more likely to choose shares with a good track record, helping to achieve steady long-term returns.

The gender investment gap doesn’t seem likely to close soon

Not only is the seismic gap between male and female investors increasing, but it’s even wider among younger generations. Among those aged 18 to 34 years, Boring Money found that just 20% of women were investing, compared to 41% of men.

As a result, it seems unlikely that the gender investment gap will close soon. However, Boring Money’s calculations suggest that the UK could have equal numbers of male and female investors as early as 2032 if the investing community took action.

• If every female investor talked to a woman who doesn’t invest and just 10% of them started investing, the gap could close in nine years.
• If both male and female investors did so, the gap could be closed by 2032.

While talking about finances can feel uncomfortable, and investing might not suit everyone, creating a community based on open conversations about investing could help make significant strides towards financial equality.

You don’t need to be an expert to get started

While women are often held back from investing by a lack of knowledge and confidence, suitable support can help anyone become an investor without being an expert.

As a new investor, a financial planner can help you understand how it works, what your options are, and which ones might be suitable for your needs. Ideally, your financial planner should be someone you trust, who makes you feel comfortable, listens to your concerns, and answers your questions.

Taking time to understand your goals and personal circumstances, I can help you define an investment strategy that works for you and help you to invest with confidence, knowing you’ll be supported through any market turbulence or changes in your circumstances.

Email Marnel.Stafford@fosterdenovo.com, or call 07305 970959 or 0207 469 2800, to find out more about how I can help you.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.