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 finances.

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.

Citizens Advice recommends seeking qualified advice when investing or saving, and ensuring any adviser is FCA-registered.

Claire Jones, Head of Strategic Relationships and New Business at 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.’

How can women build their wealth with confidence?

#1 Grow your financial knowledge

‘Knowledge is power, so the saying goes. And empowering women with financial knowledge is a key component in effectively managing money.

‘There are many ways to build up your knowledge. Subscribe to financial magazines or newsletters from trusted sources, listen to popular podcasts, and read finance books.

#2 Build a diversified portfolio

‘You can still invest your money, even if you’re looking to minimise risk.

‘Consider contacting a financial adviser on how best to diversify your investment portfolio to do this.

‘A diversified portfolio includes a mix of asset classes, such as cash, stocks, bonds, and property. The aim is that if one investment underperforms, your other assets will help to offset any losses.’

#3 Negotiate a higher salary

‘Ahead of any salary conversations, research industry salary standards and be prepared to articulate your value.

‘A higher salary isn’t just about earning more today – it lets you save and invest, grow your pension, and build lasting wealth for the future.’

#4 Nurture your pension

‘Building wealth is about planning for the future. Allocating extra money into high-interest savings accounts or even self-invested personal pensions (SIPPs) is a smart way to ensure your future is financially secure.

‘Always check you’re eligible for FSCS protection to make sure your cash stays safe.’

#5 Plan ahead for menopause

‘According to a report by the NHS Confederation, approximately 60,000 women in the UK are not in employment because of menopause symptoms, causing unexpected fluctuations in income.

‘Even if menopause feels like a concern for much later in life, acting now can ease future challenges.

‘Consider putting extra funds into your pension pot to compensate for periods of not working and consistently review your savings strategy to ensure your money is reaching its full potential.’

#6 Build an emergency fund

‘Whether it’s divorce, bereavement, or redundancy, having a financial safety net can make all the difference.

‘Experts recommend saving three to six months’ worth of living expenses. Regularly check and adjust the size of your fund as your financial situation evolves.’

You can view the full study here.