When it comes to your finances, are you a Miranda – responsible, risk-averse and well informed? Or perhaps you’re more of a Samantha, never afraid to splash out on a well deserved splurge but self-made with financial security to back it up? Or – and no judgement – do you relate most to Carrie Bradshaw, living for today, but slightly beyond your means and without a clear plan for your financial future?

No matter which category you fall into, it’s time to talk about money. And specifically, about investing your money.

If the thought of investing gives you the ick or sends you running for the hills, you're not alone – 67% of women don't invest their money, meaning 3.3 million less women than men hold investments, according to HSBC UK. So over time, women are leaving money on the table with less funds for housing, childcare and retirement down the line.

It's called the gender investment gap – and it’s growing. Recent research from investment research house Boring Money found that the gender investment gap rose by £54 billion this year, to £567 billion. And despite all the important work being done to close it, including accelerator programmes for women investors, increasing financial literacy in early education and building the pipeline of women angel and venture capital investors, the gap is still on the up – men now hold 69% of all invested assets, up from 68% in 2023.

And ultimately women are missing out.

What’s driving the growing gender investment gap?

“Men have 2.4 times more in average invested assets than women, an increase from 2023,” the Boring Money report states. It also identified a few crucial reasons why the gap in investment is growing:

1. Disparate adoption

Men aged 18-34 are investing at double the rate of women in the same age group, meaning women take longer to get in the game and some never fully catch up to their male counterparts. As late adopters, women miss out on financial capital that could be available to the sooner and so the gender investment gap persists.

 2. The gender pay gap

Despite the gender pay gap being narrower amongst younger people, the Boring Money report cites the pay gap and discrepancy in parenting responsibilities as significant causes of the gender investment gap. Women with caring responsibilities tend to prioritise their spend on family and childcare, which can lead to a more conservative approach to investing. Plus, impacts from the pandemic on women in the workplace are still being felt, with job losses and redundancies setting back careers and earning potential.

 3. Women are more considered when it comes to financial risk

Only 18% of women would choose a higher risk pension compared to 33% of men, a single data point indicating a larger trend that across age groups, women are less likely to take a financial risk, even amongst those who invest. Playing it safe means that over time, generally women investors see less return and growth than men.

 4. Women keep more cash

Women who invest keep 29% of their assets in cash compared to 25% of men who invest. Systemic and structural barriers like lower wages and wealth and less appetite for risk leads women to keep more cash on hand, according to the report. 

Busting investing myths

In order to help shine a light on the common misconceptions around women and investing to help close the gender investment gap, we asked AllBright Investment Club’s financial planning expert and CEO Frankie Smith to bust the most common myths.

The myth: Women lack financial confidence

The truth: “This perception can be patronising and oversimplifies women’s investment behaviour. Women are often seen as more risk averse, however, they tend to be more inquisitive and can take similar risks once fully informed,” Frankie tells AllBright.

The myth: Women don’t understand investing

The truth: “There’s a misconception that women lack understanding of markets and venture capital. In reality, the financial planning industry is predominantly male dominated and often tailored to men, neglecting to engage women effectively,” she explained.

The myth: Women’s financial decisions are influenced by men

The truth: “Contrary to this belief, many women are taking control of their financial decisions. Research from FSWM shows that by next year, 60% of wealth in the UK will be held by women, highlighting the need for a more inclusive approach in financial planning,” Frankie said.

How to start investing

To close the gender investment gap, women can build a financial plan and consider early investments, even if they’re small. “The saying ‘it’s time in the market, not timing the market’ emphasises that successful investing is about long-term growth, staying informed, and making money work for future goals,” Frankie said.

If you’re keen to dip your toes into the rich pool of investing and start making your money work for you, she offered a few ways to get started.

1. Build a budget

 Be transparent with your finances to determine how much you can save and ensure you have a cash buffer as an emergency fund that suits your individual needs.

2. Start small

You don’t need a lot of money to begin investing. Start with as little as £10 a month and build the habit by setting up an automatic direct debit, allowing your investments to grow through the power of compounding.

3. Choose the right investment for you

Consider an ISA as all growth is tax-free and you can withdraw money tax-free with an annual £20k allowance. Pensions are great for long term savings but keep in mind the money is locked away. Choose the investment structure that suits your goals.

4. Diversify your investments

Avoid putting all your money in one place. Instead, spread your savings across different pots to manage risk. Finance is personal, so don’t compare yourself to others. Focus on what works best for you and your family.

5. Seek professional advice

If you’re unsure about where to start or need more detailed guidance, consult a financial advisor to steer you in the right direction.