Women as engaged with investing as men but lack confidence

Women are as likely as men to be engaged with investing but are less likely to feel confident about managing investments, according to Rathbones.

The wealth manager’s analysis showed that while women were highly engaged when it came to saving, investing, and pension planning, they tended to be more cautious, less confident, and more likely to doubt their investment knowledge than men.

Rathbones warned that this confidence gap had real-world consequences, with HMRC data showing that around 1.8 million men had a Stocks & Shares ISA compared to approximately 1.3 million women.

On the other hand, around 4 million women had a Cash ISA compared to 3.1 million men.

The research highlighted that the gender investing gap was not driven by apathy, but by confidence, risk perception, and access to support.

Rathbones noted that, with more people needing investment growth to protect long-term wealth, confidence gaps risked becoming lasting wealth gaps.

More than eight in 10 women (83 per cent) were carefully planning their savings, investments, and pensions, broadly matching men (86 per cent).

However, just 67 per cent of women said they felt confident managing their savings and investments, compared to 80 per cent of men.

The research also found a knowledge confidence gap, with 36 per cent of women believing they lacked the knowhow to manage their investments themselves compared to 23 per cent of men.

Four in 10 (40 per cent) men said they were happy to take a high level of risk to achieve a higher return compared to 25 per cent of women, while 35 per cent of women felt stocks and shares were too risky versus 23 per cent of men.

“Taken together, the findings challenge outdated assumptions that women are uninterested in investing,” said Rathbones financial planning divisional lead, Rebecca Williams.

“Instead, they show women are active and engaged planners who often approach investing more cautiously - largely due to lower confidence rather than lack of interest.

“Women are CFOs of their own lives every day, this isn’t a matter of capability. It’s about having access to the right resources, information and support to give women the confidence to make investment decisions.

“With women typically earning less over their lifetimes, taking more career breaks, living longer and retiring with smaller pension pots, this information gap risks compounding existing financial inequalities over time.”

The research indicated that women were more likely to seek guidance, reassurance, and a relationship-led approach.

Six in 10 (60 per cent) women wanted a personalised service from someone they know and 73 per cent were happy to pay for financial advice if it delivered a better outcome, compared with 56 per cent and 70 per cent of men respectively.

Over a third (34 per cent) of women would prefer to invest in ethical or sustainable investments even if it reduced their return, compared to 29 per cent of men.

“Through our Female Financial Awareness Courses, we regularly hear from women who want to feel better informed and more confident about their investments and savings,” commented Rathbones senior investment director, Joanna Pennington-Jones.

“International Women’s Day is a reminder that women aren’t disengaged from investing - they’re engaged, but often less confident.

“Improving access to clear information, personalised advice and supportive investment solutions, particularly for those taking their first steps into investing, could play a vital role in narrowing the gender wealth gap and helping women turn careful planning into long-term financial confidence.”

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