When people talk about financial inequality between women and men, the gender pay gap usually dominates the headlines. Yet there is another, less visible divide: the UK investing gender gap. How women and men put their money to work affects wealth, retirement security and financial independence. Here are six facts, and what women in business can do to close the gap.

Six facts about the UK investing gender gap

1. Fewer women than men participate in investing

The FCA Financial Lives Survey 2022/23 found that 21% of UK adults hold investments outside a pension. Beneath that headline figure, the gender split is stark: 28% of men invest compared with just 15% of women. HMRC ISA statistics for 2022/23 tell a similar story. Around 2.2 million men subscribed to a Stocks and Shares ISA, compared with roughly 1.7 million women, and the average male subscription was about £10,000 compared with around £7,500 for women. These figures show that the UK investing gender gap is not only real but wider than headline savings rates suggest. Closing it starts with understanding the barriers that stop women from entering the market.

2. Women are more likely to rely on cash savings

The same FCA research shows that women are more likely than men to hold only cash-based savings products: 66% of women compared with 56% of men. Saving is essential, but keeping long-term wealth entirely in cash can mean losing purchasing power to inflation. For women, who already face lower average lifetime earnings and more career breaks, this cash-first approach can compound the gender wealth gap over time. Building a personal finance plan that balances accessible savings with longer-term investing is one way to address the imbalance.

3. Women report lower investment confidence and financial literacy

Confidence matters when it comes to investing. The FCA found that only 27% of women feel confident choosing investments, compared with 41% of men. Women were also more likely to say they do not understand investment products or the risks involved. This is a knowledge and confidence gap, not a competence gap. Better financial education, clearer product information and supportive peer networks can help close this confidence divide. For more on the broader financial confidence gap, see Women Earn More Than Ever But the Financial Confidence Gap Remains.

4. Women are more likely to see investing as risky

Investing always involves risk, but perceptions of that risk differ by gender. FCA data indicates that women are more likely than men to view the stock market as too risky or to worry about losing money. That caution is understandable, yet it can become costly. Over the long term, cash savings have rarely kept pace with inflation, meaning that avoiding investment risk can carry its own risk: the erosion of real wealth. The key is to match investment choices to personal goals, time horizons and appetite for risk, rather than to avoid investing altogether.

5. The investing gap feeds into the pension and wealth gap

Investing outside a pension is only part of the picture. The gender investing gap also shows up in pension pots. Research published in 2022 by the Pensions Policy Institute, drawing on Office for National Statistics data, suggests that women approaching retirement have private pension wealth roughly a third of men’s. Lower earnings, part-time work and caring responsibilities all reduce contributions, while lower investment participation can mean missed growth over decades. For women in business and employment alike, closing the investing gap is therefore a key part of closing the retirement gap.

6. Women are more likely to seek professional advice or use managed products

Among those who do invest, women in the UK are more likely than men to use regulated financial advice, robo-advisers or ready-made investment portfolios. The FCA notes that women investors are more likely to rely on professional guidance when building their portfolios. This can be a strength; good advice helps people avoid costly mistakes and stay invested through market volatility. However, it may also reflect the lower confidence highlighted earlier. Making affordable, transparent advice widely available, and improving investment literacy, can help women feel empowered to make their own informed decisions.

Why the UK investing gender gap matters for women-led businesses

The gap is not only a personal finance issue. Women founders who are less likely to invest personally may also be slower to put growth capital into their own ventures, or to negotiate from a position of financial security. The British Business Bank has highlighted that women-led businesses receive a disproportionately small share of external finance, a pattern that mirrors the personal investing gap. Understanding your own risk appetite and investment options can make you a more confident negotiator, whether you are seeking equity, debt or grant funding. For more on the business funding gap, see our guide to the female founder VC funding gap, and for practical growth strategies read how UK women entrepreneurs can overcome funding barriers to scale their businesses.

Practical steps to start closing the gap

Individual action alone will not remove structural inequality, but it can shift your starting point. Here are practical steps for women in business:

• Start with what you can afford. Even small monthly contributions to a Stocks and Shares ISA or pension can compound over time.
• Use tax wrappers. A Stocks and Shares ISA allows you to invest up to £20,000 in the 2025/26 tax year without paying tax on dividends, interest or capital gains. Pension contributions also attract tax relief at your marginal rate.
• Consider low-cost index funds or ready-made portfolios. These spread risk and remove the pressure to pick individual stocks.
• Get informed. The MoneyHelper service and the FCA’s consumer guidance offer free, impartial information.
• Track your pension. Use the gov.uk State Pension forecast and combine old workplace pensions so nothing is lost.

Your next steps to close the investing gap

The UK investing gender gap is driven by a mix of structural inequality, lower confidence and product design that often fails to speak to women’s needs. Employers, educators, policymakers and the financial services industry all have a role to play. That means normalising conversations about investing, offering workplace financial education, designing products that work for interrupted careers, and ensuring advice is accessible and jargon-free. For individual women, the first step is often the simplest: start small, learn the basics, and invest in a way that aligns with your goals.