When it comes to building long-term wealth, the disparity between men and women remains stark. A recent report from FT Adviser reveals that a staggering 75% of women currently have no investments. This isn't just about having less money in the bank — it's about missing out on the compounding growth that investing provides over decades. For many women, this gap translates directly into a less secure retirement.
The Reality of the Gap
While nearly half (48%) of men have money invested in some format, only a quarter (25%) of women can say the same. Furthermore, 50% of women stated they don't invest and have no plans to do so.
This reluctance often stems from a perceived lack of knowledge, lower risk tolerance, and the persistent gender pay gap — which leaves many women with less disposable income to invest. Career breaks for caregiving make consistent saving even harder.
The Cost of Staying in Cash
For those women who do manage to save, there is a strong tendency to favour cash over investments. While cash feels safe, it carries a hidden risk: inflation. When inflation outpaces savings account interest, the real purchasing power of that money shrinks over time.
Investing in a diversified portfolio has historically provided returns that outpace inflation. By avoiding the market entirely, many women are inadvertently choosing the "safe" option that almost guarantees their money will lose value in real terms.
"By avoiding investments entirely, many women are choosing the 'safe' option that almost guarantees their money will lose value in real terms over time."
Breaking Down the Barriers
Investing doesn't require a finance degree or a large sum. It requires a clear understanding of your goals, your timeline, and your comfort level with risk.
- Start small. Many platforms allow you to begin with as little as £25 a month. The key is consistency.
- Educate yourself. Focus on the basics: diversification and compound interest.
- Seek independent guidance. Finding an adviser who acts as a guide — not a salesperson — makes all the difference.
Let's change that narrative.
At Think Break Consultancy, we don't sell financial products and we don't earn commissions. We charge an hourly rate for clear, unbiased guidance — ISAs, pensions, or long-term strategy.
Think clearly. Break through the jargon.
References
- FT Adviser. "Three quarters of women have no investments"