Research surrounding International Women’s Day exposes significant disparities in investment confidence and behaviours between men and women, highlighting the importance of tailored financial education.
Recent studies by HSBC UK and Boring Money have highlighted a growing gender investment gap in the UK, with significant implications for financial equality between men and women. The research, released in proximity to International Women’s Day, sheds light on the disparities in confidence, savings, and investment behaviors between genders.
HSBC UK’s survey revealed a stark confidence gap, with less than a third of women feeling confident about investing, compared to over two-fifths of men. This lack of confidence is compounded by the fact that a greater percentage of women (34%) have no savings to invest, in comparison to 28% of men. The study further found that nearly two-thirds of women admitted uncertainty on how to start investing, a sentiment less common among men.
Rebecca Owers, head of wealth distribution at HSBC UK, stressed the crucial role of financial education in empowering women to take control of their financial futures. The research also noted a tendency among women investors to follow the investment choices of their friends or family, signaling the need for more diverse and tailored investment education and options.
Boring Money’s research underscored the widening gender investment gap, quantifying it at £567 billion as of January 2024. This gap was largely attributed to young men entering the investment market at a higher rate than their female counterparts. Holly Mackay, CEO of Boring Money, expressed concern over the gap, which now surpasses the GDPs of countries like Poland or Argentina. The survey also highlighted that men hold an average of £102,000 in investments, compared to £66,000 by women, with women more inclined to keep their assets in cash due to lower risk tolerance.
Both studies draw attention to factors such as societal inequalities, including the gender pay gap and caregiving responsibilities, as well as the need for financial institutions to offer more user-friendly platforms and education to facilitate investment accessibility and confidence among women.
