Why We Can’t Afford to Wait: Closing the Gender Investment Gap
We’ve all heard about the gender investment gap, and it rightly riles us up. But here’s the reality: this isn’t just a personal issue—it’s deeply systemic. It didn’t happen overnight; it’s the result of generations of inequality, where women have been shut out of financial conversations and opportunities.
The system wasn’t built with us in mind, and it shows.
Vestpod’s Money Matters Festival 2024 at KOKO, Camden.
From the gender pay gap to career breaks for caregiving (with women in the UK shouldering 60% more unpaid care work than men, according to the ONS, 2016), these barriers can feel truly overwhelming.
Yet, while these challenges are real and deeply ingrained, we don’t have to wait for the system to change before we take action. We can still make moves to help ourselves and reshape our financial future, even within these limitations. It starts with small, intentional steps that build up over time. These steps help empower us to take control where we can and demand better.
A Future That Looks Different
The numbers are a wake-up call: there’s a £15 billion gap between the investments made by millennial and Gen X women compared to men in the UK (Kantar, 2021). And if the average 25-year-old woman continues on this path, she’ll retire with £100,000 less than her male counterparts (Scottish Widows, 2022). That’s not just a dent in a bank account—it’s lost security, limited choices, and a compromised future.
The stats are eye-opening: while women control 75% of global discretionary spending (Boston Consulting Group, 2020), only 32% of the world’s wealth is currently held by women. However, this share is expected to rise significantly to $97 trillion by 2024. We already have the power to influence industries, markets, and economies—so why aren’t we leveraging that same power to take control of our financial futures? This is a massive opportunity for women to step into their financial power, not just as consumers but as investors, shaping the future of wealth and driving meaningful change in the world.
The Barriers Are Real—But So Is the Solution
This gap didn’t emerge overnight—it’s been built over centuries, brick by brick, as finance has long been a “boys’ club.” Up until the 1970s, women in the UK couldn’t even open a bank account or apply for credit without a male guarantor. While the Equal Pay Act came into force in the 1980s, financial independence for women has been slow to follow. For decades, women were locked out of building credit, accumulating wealth, and making financial decisions independently, which has left lasting scars on confidence and access to financial tools.
This inequality begins early, with research from Starling Bank revealing that boys receive 20% more pocket money than girls—£3.00 per week versus £2.50—reflecting how financial disparities are ingrained from childhood. This financial gap is further compounded by outdated stereotypes, where boys are paid for achievements like academic performance, while girls are rewarded for traditional household chores
Even today, women take on 60% more unpaid care work than men (ONS, 2020), leaving them with fewer opportunities to invest and grow their wealth. Couple this with financial advice and products that don’t cater to women’s specific needs, and the system continues to work against us. The gender pay gap, which could take 286 years to close according to the UN, exacerbates the problem—women earn less, live longer, and retire earlier, leaving them with smaller pension pots.
Yet, these barriers aren’t immovable. A 2021 study by Fidelity found that 67% of women now invest outside their retirement accounts, up from 44% in 2018. While only 33% of women see themselves as investors, this is a mindset we must change. Christine Lagarde even suggested that if the financial system had been designed by women—imagine “Lehman Sisters” instead of Lehman Brothers—the 2008 financial crisis might have unfolded differently, with more caution and fewer risks. And the potential is massive: research from McKinsey shows that equal participation could add $28 trillion to global GDP by 2025. The opportunity is ours for the taking.
What Needs to Happen
Let’s put the status quo behind us. The financial system is due for a change, and we have the power to be at the forefront of that shift. Here’s where we can begin:
1. Change the Story on Financial Education
Financial literacy has to reflect the realities women face—whether it’s navigating career breaks for caregiving or planning for longer life expectancies. We need education that empowers us to talk openly about budgeting, repaying debt, credit, wealth building, investing, and taking calculated risks. Vestpod offers courses designed to provide women with the knowledge and confidence to make smarter money moves.
2. Policies That Work for Us
Equal pay is long overdue. It’s time for governments and companies to prioritise transparent pay practices and develop financial wellness programmes that do more than tick boxes.
We need policies that transform lives, addressing everything from pay equality to retirement savings plans that account for caregiving gaps.
3. Financial Products Made for Us, Not Just at Us
Women’s needs are not niche, and it’s time to create financial products that truly cater to women's unique financial needs but also to improve how these solutions are communicated—avoiding jargon, fostering clear understanding, and genuinely addressing the issues women face.
It’s about moving beyond superficial gestures like "pink-washed" campaigns and ticking boxes, and instead designing tools that reflect the real-life disparities and financial challenges because we’re not looking for a “one-size-fits-all” approach.
Tune it to The Wallet podcast to get started.
4. Creating Financial Spaces That Get It
The world of finance must shed its exclusivity. We need spaces for honest money conversations—where women can share experiences, celebrate wins, and grow their wealth without judgment. The Vestpod community is a great starting point for women taking control of their finances.
With only 16% of financial advisers in the UK being women, the industry needs to attract more, particularly those with lower incomes and assets. This can be achieved by fostering a supportive culture that promotes women based on merit, creating peer-to-peer learning networks, setting internal diversity targets linked to executive pay, and showcasing successful women in finance to inspire others.
The Cost of Waiting
Unfortunately, waiting is costing us. Every year this gender investment gap remains open, we’re not just losing money, we’re giving away bits of our freedom, our choices, and secure retirement.
The moment to act is now. If we continue allowing the system to dictate our financial futures, we’ll leave our potential untapped. It’s time to reshape how money moves, and that starts with us. The tools and resources are here; we just need to use them.
This Is More Than Money
Bridging the gender investment gap isn’t about playing catch-up. It’s about rewriting the financial rules entirely. This isn’t just about today—it’s about making sure we don’t pass down the same financial insecurities to the next generation. It’s about ensuring every woman, no matter her background, has the chance to build a financial life that’s resilient and ambitious.
At Vestpod, we’re creating a space where financial education goes beyond information. It’s a tool for empowerment. We don’t just teach women how to invest, we show them why they need to push for more, demand better, and take action.
Ready to Take the First Step?
It’s time to take control. Explore our courses and resources to start shaping your financial future today. Don’t wait for the gap to close on its own—let’s make history by building a financial future that’s entirely our own.
