Research Shows Women Invest, But Confidence Holds Them Back

Women are just as likely as men to plan their finances carefully but are significantly less likely to feel confident managing investments, new research from Rathbones, one of the UK’s leading wealth and asset management groups, suggests.

A nationally representative survey of 3,092 UK adults with investable assets from £25k to over £2.5 million shows that while women are highly engaged when it comes to saving, investing and pension planning, they tend to be more cautious, less confident and more likely to doubt their investment knowledge than men.

That confidence gap has real-world consequences. HMRC data shows around half a million more men than women subscribe to Stocks & Shares ISAs, with roughly 1.8 million men compared with 1.3 million women investing through the tax efficient wrapper.

By contrast, women dominate Cash ISA ownership, with around 4.0 million women subscribing compared with 3.1 million men.

Despite this, the Rathbones research suggests that the gender investing gap is driven not by apathy, but by confidence, perceptions of risk and access to support - an issue that remains particularly relevant ahead of International Women’s Day (8 March).

With interest rates expected to ease and more savers needing investment growth to protect long-term wealth, confidence gaps risk becoming lasting wealth gaps.

A confidence gap — not an engagement gap

• Careful planners, lower confidence: More than eight in ten women (83%) say they carefully plan their savings, investments and pensions, broadly matching men (86%).

• Engagement does not translate into confidence: Around two thirds of women (67%) say they feel confident managing their savings and investments, compared with four in five men (80%) — a gap of around 13 percentage points.

• Women more likely to question their knowledge: Over a third of women (36%) say they lack the knowhow to manage their investments themselves, compared with 23% of men.

• Risk appetite drives divergence: Four in ten men (40%) say they are happy to take a high level of risk to achieve a high return, compared with one in four women (25%).

• Perceptions of risk differ: Around 35% of women say stocks and shares are too risky, versus 23% of men.

Rebecca Williams, Financial Planning Divisional Lead at Rathbones, says: 

“Taken together, the findings challenge outdated assumptions that women are uninterested in investing. 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.”

Rather than avoiding investing altogether, the poll suggests women are more likely to seek guidance, reassurance and a relationship-based approach.

Six in ten women say they want a personalised service from someone who knows them. Nearly threequarters of women (73%) say they are happy to pay for financial advice if it delivers a better outcome, compared with 56% and 70% of men, respectively.

Other notable findings

• Values matter more to women: Around one in three women (34%) say they would prefer to invest in ethical or sustainable investments even if it reduced their financial return, compared with 29% of men.

• Information gaps persist: More than one in four women (26%) say they usually don’t know current interest rates or return levels, versus 17% of men.

  
  

Joanna Pennington-Jones, Senior Investment Director at Rathbones, says:

“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."

“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.”