Just 9 out of 100 Women Invest in a Stocks and Shares ISA

Only 14% of people in the UK invest in a stocks and shares ISA, with only nine out of every 100 women (9%) investing in the stock market via this tax efficient wrapper, according to the Women & Money series from Fidelity Personal Investing.*

The Women & Money series drills deeper into the money attitudes and investing habits of men and women. ISAs are seen as a valuable part of overall financial planning with 44% of UK adults taking advantage of the tax benefits of a cash ISA. Yet, a lack of confidence in investing in the stock market seems to be one of the key reasons for the low take up of stocks and shares ISAs by women.

These findings are reflective of HM Revenue & Customs (HMRC) data** which shows a gender gap when it comes to investing, with women holding more in cash ISAs while far more men hold stocks and shares ISAs compared to women. (See the charts below.)

According to Fidelity’s research, the biggest barrier between women and an investment in the stock market was not feeling confident about this type of investing (34%) and believing they did not have enough knowledge to invest their money (31%).

Those who have cash savings or cash ISAs but didn’t have stocks and shares ISA were asked for their top five reasons they don’t invest in the stock market:

Source: Fidelity International

Maike Currie, investment director for personal investing at Fidelity International comments: “HMRC data backs up our findings of a glaring gender divide, with men far more willing to move up the risk spectrum and invest in stocks and shares than women, who instead prefer to leave their hard-earned savings languishing in cash. 

“Clearly women are diligent savers given their take up of cash ISAs, which outweighs that of men. But their reluctance to invest in the stock market is concerning. The risk of women falling into a huge ‘investment gap’ is especially concerning given that we are expected to live for  longer than men, are often the primary caregivers and may take a career break to start a family or look after an ill or elderly relative. These life events will have an impact on our overall life savings. That’s why women need their money to work harder for them. 

“Our calculations show if you had invested £15,000 into the FTSE All Share index five years ago, you would now be left with £23,799. If, however, you had invested £15,000 into the average UK savings account over the same period, you would be left with a paltry £15,122. That’s a difference of over £8,677***, showing that the long term benefit of investing in the stock market is too high for any sensible lady to ignore.”

For more information about Fidelity’s Women & Money series, please visit our dedicated web page https://www.fidelity.co.uk/investor/markets-insights/women-investing-b.page