Only one in five women take financial risks to build wealth: is there an investment confidence gap?

A new poll from high-interest savings platform Flagstone reveals a persistent confidence gap between men and women when it comes to managing investments.

Just one in five women feel comfortable taking financial risks, such as investing in stocks and cryptocurrency, to grow their wealth (20%). By comparison, over a third of men are willing to do so (36%). This suggests women are less inclined to take financial risks to grow their wealth.

Women are also less likely to invest a large sum of money compared to men. Just over one in 10 women would prioritise investing for the future if they inherited a large sum (11%), compared to 17% of men. Instead, women tend to favour traditionally ‘safer’ financial decisions, such as investing in property (25%), paying off debts (24%), and saving in a bank account (14%). 

This mirrors findings from Flagstone’s Savings Inertia Report: women frequently exhibit passive patterns in managing their finances. According to the report, men are twice as likely as women to have substantial savings that could earn significant interest. 37% of women have also never adjusted their savings plans to reach financial goals or weather market conditions – 10% higher than men (27%).

Stress appears to contribute to women’s lower financial confidence. Women are marginally more likely to avoid making financial decisions because they find them stressful (17%), while 12% of men feel similarly.

These gaps in financial behaviour are only widened by the gender pay gap. Although the pay gap is narrowing, women still earn less than men over their careers. Many also take prolonged career breaks for childcare, further setting back career progression, income growth, and financial stability. As a result, women would need to work for an additional 19 years on average to build the same pension pot as a man.

This helps to explain why there are 3.3m fewer female investors than male investors. Based on those currently investing, the average amount invested is £70,000 for women and £115,000 for men.

Proactive investment can help women regain momentum for their financial future. And seeking the right financial advice can help break the confidence barrier women face. Yet only 14% of women say they seek advice from a financial adviser.

Women are more likely to rely on family and friends to make financial decisions (17%). Men, on the other hand, are more likely to rely on advice from financial advisers (20%).

This habit is risky. Friends and family rarely see the full picture of your finances, and their advice often reflects their own experiences. Research shows those who take financial advice from family and friends alone are £42,000 worse off on average.

Claire Jones, Head of Strategic Relationships and New Businessat Flagstone, commented on the study: 

‘Women face a persistent confidence gap when it comes to managing finances, from taking investment risks to seeking professional advice. Too often, the decisions people make are driven by fear of losing wealth, rather than confidence in how to use it. That fear can limit what the money achieves.

‘Closing this gap means empowering women with the right knowledge, tools, and access to reputable financial advice, so they can invest and save with confidence.’