Closing the gender gap in investing
When it comes to investing, young women are noticeably lagging behind their male peers. Recent data paints a stark picture, revealing that only one-third (34%) of women aged 18-24 are investing their money outside of pensions[1]. By contrast, nearly two-thirds (64%) of young men in the same age group are choosing to invest, highlighting a significant gender imbalance in financial engagement at an early age.
This disparity isn’t just a statistic; it’s a critical issue that can have lasting effects on future financial security. The gap highlights the need to understand and address the factors preventing young women from investing. Whether it’s a lack of confidence, limited access to resources or traditional attitudes about financial decisions, these barriers are preventing a significant portion of young women from taking the necessary steps to secure their financial futures.
Understanding the financial confidence gap
The disparity is not only about how much young women invest but also about their overall savings. Excluding pensions and property, the average savings and investments for 18-24-year-old men is around £3,000, while young women average only £1,900.
One key factor driving this gap is confidence. Over half (53%) of women aged 18-24 admit they lack confidence in managing their retirement savings. Meanwhile, only 31% of men express the same concerns. Without the confidence to start investing early, young women risk having significantly less by the time they retire.
A problem that worsens with age
This lack of confidence affects not only young women today; it also lays the groundwork for financial inequality later in life. For instance, the data highlights that women over 55 have an average of £20,000 in savings and investments (excluding pensions and property), while men of the same age average £50,000.
Unfortunately, many women in this age group remain disengaged from financial planning. Alarmingly, only 40% of women over 55 invest outside their pensions, and half have done little to no research on how much they’ll need for a comfortable retirement. Men, while still not perfect, fare slightly better, with 40% admitting to being similarly unprepared.
Why women need to start investing now
The earlier you begin investing, the greater your chances of building wealth due to the power of compound growth. Young women, in particular, could greatly benefit from exploring investment options. While investing may seem intimidating, starting small and building confidence over time can make a world of difference in financial security.
It’s also essential to challenge traditional attitudes toward money. Investments shouldn’t be considered a ‘risky move’ or a male-dominated activity. With the right research and resources, investing becomes a strategic and rewarding method to secure your financial future.
Are you ready to take control of your financial future?
Investments are not only about increasing wealth; they also create opportunities, protect your loved ones and promote freedom. It is never too early or too late to take charge of your financial wellbeing. Contact us today for advice on developing a plan that suits you. Whether you are starting from scratch or looking to broaden your portfolio, we are here to assist. Secure your financial future one step at a time.
Source data:
[1] Scottish Widows’ Women and Retirement Report. Research conducted online by YouGov across a total 3,626 nationally representative adults aged 18+ in the UK between 23–30 August 2024.
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