How you can help close the gender ISA gap

Since ISAs were introduced in 1999, the tax-efficient wrappers have helped millions of Brits save and grow their hard-earned money. But how come there’s a whopping £6.6bn gender ISA gap?

Our latest report peels back the layers, from barriers to investing to changes the AJ Bell Money Matters team want to see from the financial services sector and policymakers.

In this article, I’ll extract the key insights, how it affects you and small changes that could make a big difference.

What is the gender ISA gap?

When it comes to ISAs, women are ahead of men in one key area: cash savings. There are about a million more women with cash ISAs than men, which shows strong financial discipline and an awareness of the importance of saving. But when it comes to investing, the numbers flip - men hold nearly 500,000 more Stocks and shares ISAs than women.

This gap matters because, on average, men’s ISAs are worth £3,000 more than women’s, creating that huge £6.6bn gender ISA gap*! While women are excellent at saving, their lower uptake of investing means they may miss out on long-term financial growth.

The good news when we dive into the data of AJ Bell customers is that women who do invest often contribute more than men each month, showing they develop and maintain great habits once they make the move into investing. The challenge is getting more women to take that step.

When does the gender ISA gap begin?

Interestingly, looking at AJ Bell data, young women have on average slightly higher Stocks and shares ISA balances than young men. This trend starts with Junior ISAs (between ages 13-18) and continues until about age 28.

So why does the gap appear later? The real issue is volume - far more men open and subscribe to Stocks and shares ISAs than women. The gender ISA gap starts at age 21, when men begin investing in much larger numbers. The gap reaches its peak in people’s 30s, when men’s total ISA value is 46% higher than women’s.

This timing isn’t surprising; 31 is the most common age for women to give birth in the UK, which often means career breaks, part-time work, and extra financial pressures. This is also the decade when many people buy homes and get married, further squeezing budgets.

As years go by, the gap continues. Over time, investment growth compounds, meaning men’s wealth accelerates while women’s investments lag behind. Even small differences in investment habits, earnings, and risk-taking can lead to dramatically different financial futures.

Why aren’t more women investing?

Women and men feel differently about investing. When asked how investing makes them feel in our AJ Bell customer survey**, men often say: in control, optimistic, secure and confident.

Women also mention feeling in control and optimistic, but they are far more likely to feel nervous.

Many hesitate to open an account and start investing because of:

❌ Lack of knowledge

❌ Fear of losing money

❌ Choice paralysis

❌ Lack of trust in financial services

What can I do?

Closing this gap isn’t solely women’s responsibility; it requires change from the financial services industry and the government. In our report, you can check out our suggestions for financial firms and policymakers.

Here are our top three suggestions for how you can help shrink the gender ISA gap (and feel good about your money too!):

1. Consider Stocks and shares ISAs for long-term savings.
2. Start with diversified funds to benefit from spread of risk, industries and companies.
3. Use beginner-friendly platforms like AJ Bell Dodl to build confidence.

Investing doesn’t have to be risky or complicated. Stocks and shares ISAs historically outperform cash ISAs over the long term and you can start with just £25 a month, increasing contributions as you grow more comfortable. Platforms like AJ Bell Dodl offer 4.58% AER variable interest on uninvested cash while providing clear, jargon-free guidance to help you transition into investing.

Closing the gender ISA gap isn’t just about individual choices and we’re determined to make a difference. By providing better education, reducing complexity and building confidence, we can help more women take advantage of long-term investing and improve their financial futures.

*The average man with an ISA holds £3,000 more than a woman with an ISA, for cash and Stocks and shares ISAs combined according to HMRC data. This is despite the fact that ISAs are more popular among women, with 10.7 million ISAs held by men and 11.5 million held by women. The larger sums held in ISAs by men means an ISA gap of £6.6bn exists in the total sum held in ISAs between men and women.

Source: HMRC/AJ Bell. Average ISA values by age/gender, including all types of ISA.

**AJ Bell customer survey of 1,530 individuals, 2-6 December 2024