Women now have the means to invest, so why aren’t they?
Where the City’s experts have their say. Today, it’s Susannah Streeter, head of money and markets at Hargreaves Lansdown
The phrase “mind the gap” is one most Londoners are all too familiar with, but for women, ‘the gap’ has a deeper, financial significance, and it’s one we shouldn’t just mind – but need to take action to bridge right now. The oncoming train many women are facing is poverty in retirement caused by gender pay, pensions and investment gap. The root causes of this have been well documented, from the motherhood penalty to the debilitating cost of childcare in the UK and the disparity in what women hold in their pensions. But we can’t just blame structural inequalities, plenty of women have the means to start on an investing journey, but simply don’t.
The Hargreaves Lansdown Why Women Invest report published this week shows that only a small fraction of women invest; just 16 per cent have stocks and shares ISA. Despite 59 per cent of women saying they feel financially confident, many still aren’t taking the leap. It may be the jargon that’s a barrier, or an old-fashioned view of what an ‘investor’ looks like.
Two-fifths of women say investing is presented as something for men and more than a fifth say they don’t know anything about investing. But when we asked a series of questions about investment, a large majority of women got the answers right. It shows that it’s the feeling we don’t know enough – rather than lacking the knowledge, which is holding women back.
We’re trying to change that with our Financially Fearless Campaign to help more people find the confidence to boost investments and financial resilience.
We’ve heard a lot about how we should ‘lean in’ to a career – but not enough about leaning into investing. Let’s use International Women’s Day as a prompt to take the first step on this important journey.
The Hargreaves Lansdown Why Women Invest report published this week shows that only a small fraction of women invest; just 16 per cent have a stocks and shares ISA. Despite 59 per cent of women saying they feel financially confident, many still aren’t taking the leap. It may be the jargon that’s a barrier, or an old-fashioned view of what an ‘investor’ looks like.
Two fifths of women say investing is presented as something for men and more than a fifth say they don’t know anything about investing. But when we asked a series of questions about investment, a large majority of women got the answers right. It shows that it’s the feeling we don’t know enough – rather than lacking the knowledge, which is holding women back.
We’re trying to change that with our Financially Fearless Campaign to help more people find the confidence to boost investments and financial resilience.
We’ve heard a lot about how we should ‘lean in’ to a career – but not enough about leaning into investing. Let’s use International Women’s Day as a prompt to take the first step on this important journey.
Welcome to the female guv’nor
Advancing in a career to higher-paid positions will go a long way in helping to close the gender pay and investment gaps. Role models are crucial, which is why the appointment of Clare Lombardelli as deputy governor of the Bank of England is such a welcome move. It sends a powerful message about the Bank’s commitment to gender equality and it’s a much-needed boost for female representation, especially at a time when concerns about sexism in the City are still rife. So it’s refreshing that there will now be a majority of women on the MPC.
Unleash Britain’s entrepreneurs
The country is crying out for measures to unleash the UK’s entrepreneurial spirit. We seem to have lost the confidence to take the calculated risks needed to propel growth. Moves aimed at putting more money into punters’ pockets to boost consumer spending won’t provide the incentive to push growth higher over the decades to come.
Instead, investing in Britain for the long term should be front and centre of the Budget announcements. Some changes to existing rules could go a long way. Halting planned cuts to dividend tax and capital gains tax thresholds would help support investors to make the most of their commitment to British firms and spur start-ups. Cutting stamp duty on share purchases would also help ease the burden on investors while increasing the ISA allowance would automatically increase investment in the UK.
Quote of the day
He thought he was in control and had all the power. What he didn’t realise is that he had none at all. The tables turned totally. I caught him out.
BBC Investigative reporter Sam Poling – on being underestimated.
Looking at the underestimated investigator
If you want an example of a woman who exudes quiet but powerful confidence, and whose abilities were greatly underestimated, look no further than Sam Poling. The BBC Disclosure reporter showed immense determination and dedication to gather evidence against murderer Iain Packer, who severely misjudged her. The way she adeptly and bravely handled her investigation and subsequent interview with him, which ultimately led to his conviction for killing Emma Caldwell, was outstanding. I’m sure scriptwriters are scrambling to turn Samantha Poling’s bravery into a film too. There are key lessons about how women in our society are still so under-valued.