Closing the investment gap: investing on your terms

At a glance

• The first step to take towards investing is understanding your needs and priorities.
• There is no single right way to invest. The best approach is the one you can follow over the long term.
• Taking small, consistent steps can help build confidence over time.

Women remain significantly less likely than men to invest. Fewer than one in three women (27%) invests, according to research by St. James's Place, compared to 43% of men^.1 Yet the reasons behind the gap are often more complex than they first appear.

Much of the discussion has focused on whether women are more risk averse than men. But for many women, the challenge isn’t willingness to invest. Instead, investing may not feel aligned with their goals and circumstances.

Women’s financial journeys can also look different. St. James's Place research found that more than half of women (56%) have taken a break from paid employment, compared with 38% of men. Whether due to caring responsibilities, family commitments or life events, these experiences can shape how women save, invest or plan.²

Women who have a financial plan, receive professional advice and have clear financial goals are far more likely to invest.³

Defining what matters

While it may seem obvious, knowing why you want to invest is one of the first steps on the journey.

Some people may have long-term ambitions, such as retiring at a certain age or helping their children and grandchildren reach key milestones.

Others may want to build greater financial resilience, create a pot of money that could help them navigate future life events or act as a financial safety net.

Defining what you want from investing, linking it to specific goals that feel tangible, can make the process feel more personal and meaningful.

Competence and confidence

Even when you know what you want to achieve, investing for the first time, as well as making investment decisions, can feel daunting.

Only 44% of women feel confident making changes to investments themselves, for example, compared with 63% of men, according to St. James's Place’s Financial Health 2026 report.⁴

But confidence can develop through experience and greater familiarity with investing. Successful investors don’t need extensive market knowledge or an ability to predict what markets will do next.

And for long-term investors, consistency rather than timing is often the foundation of success.

Claire Trott, head of advice at St. James's Place, says: “Many women seem to show less confidence when it comes to investing, but that’s not a question of capability. Confidence grows with familiarity, experience and support.”

Make it work for you

To make investing work for you, it’s important to choose an approach that reflects your financial situation, ambitions and preferences.

Some people prefer a hands-on approach, while others are more comfortable taking a step back and seeking guidance when needed. Where appropriate, financial advice can provide a useful sounding board for important financial decisions.

Your approach may also evolve over time. As your circumstances change, your financial priorities and objectives may change with them. This is why a flexible approach is important.

“Some life events, such as career breaks, can sometimes have a negative impact on your future from a financial point of view,” Claire adds. “But there are steps that you can take to minimise the impact. A clear financial plan and sound financial advice can help.”

Small and steady

Investing is often viewed as something that requires large sums of money, but that’s not necessarily the case.

Many people begin by investing relatively modest sums regularly. The right amount will depend on your circumstances, goals and ability to invest comfortably alongside your other financial commitments.

Investing regularly can help build wealth gradually over the long term. One reason is the compounding effect, where any investment growth that remains invested has the potential to generate further growth over time. Although investment returns are never guaranteed, compounding can have a powerful effect over longer periods.

When investing, your capital is at risk. The value of your investments can fall as well as rise over time, and you may get back less than you invested.

While the size of an individual contribution matters, developing a long-term investing habit can be just as important.

Five questions to ask before investing

Before investing, it can be useful to take a step back and think about the following questions:

1. What goal am I investing towards?
2. When am I likely to need access to this money?
3. How much can I realistically afford to invest regularly?
4. How comfortable am I that investments can rise and fall in value?
5. Would I benefit from professional advice before making any decisions?

Taking time to answer these questions can help ensure your investment choices align with your goals, circumstances and attitude towards risk.

And you don’t have to navigate financial decisions alone. When uncertainty gets in the way, having a conversation can often provide valuable perspective.

That’s why building a support network is important. Speaking with members of your family or a financial adviser can help reduce uncertainty and improve understanding.

Claire adds: “Building a support network can help you validate decisions, whether that’s about goals, plans or investment decisions.

“By engaging with other people – professionals or those you trust personally – you can build greater confidence in the decision-making process. Most importantly, investing becomes something that works on your terms.”

Sources