The Gender Investment Gap Explained, and How to Close It
The gender investment gap is the difference between how much men and women invest. Women, on average, hold more of their money in cash and invest less, which can leave them worse off over the long term. It sits alongside the better-known gender pay gap and pension gap, and it’s one of the main reasons MoneyShe exists.
It’s the gap between men’s and women’s investing. Women are more likely to keep savings in cash and less likely to invest, which means their money has a lower chance of growing over time. Combined with the pay gap and time out of work for caring, this compounds into a significant difference in long-term wealth and the chances of a comfortable retirement.
There’s no single cause, with the common factors including:
- Industry jargon – MoneyShe’s research found 63% of women say jargon puts them off investing
- Confidence – Just 31% of women feel confident about investing, compared with 44% of men (HSBC UK).
- How the industry presents itself – Financial services have historically been built by men and marketed to men – from the language, culture and imagery.
- The pay and pension gaps – Lower average earnings and career breaks mean less spare income and smaller pension pots.
- Risk messaging. Women are often nudged toward “safe” cash, which feels responsible, but it does carry risk, as cash can quietly lose value due to inflation.
Money left in cash tends to grow slowly and can be eroded by inflation, while invested money has historically grown more over the long term (with ups and downs along the way). Over decades, that difference can be large, which is why closing the gap is about long-term security, not short-term returns.
MoneyShe’s research also found that 29% of women feel trapped in a relationship or situation because they lack financial independence — a reminder that this is about freedom and safety, not just returns.
- Start, even small. Time in the market matters more than the amount you begin with.
- Use tax-free wrappers. A Stocks & Shares ISA lets your investments grow free of UK tax. (What is a Stocks & Shares ISA?)
- Keep it low-cost and diversified. Spreading your money and keeping fees low gives more of your money the chance to grow. (What is an ETF?)
- Ignore the jargon. You don’t need to be an expert to begin.
MoneyShe exists to overturn an outdated idea – that women should save while men invest. The reality is that investing gives everyone a better chance of long-term financial security. So, we offer clear, jargon-free guidance and a simple way to invest in a diversified, low-cost portfolio – from a team that invests alongside you.
Find your starting point – the Investment Matchmaker →] (link to MoneyShe risk questionnaire)
How MoneyShe invests → (link to MoneyShe portfolios page)
The difference between how much men and women invest — women tend to hold more cash and invest less, which can reduce their long-term wealth.
The pay gap is about earnings; the investment gap is about what happens to savings — men are more likely to invest, women to hold cash.
A mix of confidence, industry jargon and imagery, lower average earnings and career breaks, and messaging that steers women toward cash.
Investing puts your money at risk; its value can go down as well as up. This page is general information, not personal advice.
- What is a Stocks & Shares ISA?
- What is an ETF?
- Cash savings vs investing
- Investment Matchmaker