Women invest less than men in the UK when it comes to personal investment. In fact, the gender investment gap increased by £54 billion between January 2023 and January 2024, up to £567 billion, according to data from Boring Money. We spoke to Rachael Parland, a personal lifestyle coach from North Wales who also owns a car business, to find out what has stopped her from investing so far.

Parland, 47, and her partner, John, have children aged 23, 14, 10 and six. They are keen to invest to help build their long-term savings. Parland recently invested in two properties that are currently being renovated. The purpose is for the properties to generate income that can be used in retirement.

She is now keen to find out more about stock market investing, although it is not something she has ever done. “I’ve never looked at it before because I thought real estate was easier. It’s something I understand more and my partner is a builder so he can help with the renovation,” says Parland. “But they changed the rules around tax, inheritance and so on makes me feel like maybe it’s not as easy as it used to be.”

Parland would also like to retire in his early sixties and get his children on the property ladder. In the meantime, she wants to make sure she doesn’t miss out on other opportunities to help her money grow.

“I want my family to live a nice life, and if opportunities arise, we can go for them. I’d like to hear more about investment options to make sure I’m not missing out on something that can help my money grow faster and in a tax-efficient way,” she says.

Take your first steps

For Parland, and anyone looking to chart their long-term financial goals, the first step should be to do a full review of your finances, according to Tulip Horlington, a Lloyd’s financial expert. What comes in and out of your accounts each month? What is your disposable income? How much do you have in savings and how secure are you financially?

“We recommend that everyone has a three-month buffer in available savings,” says Horlington. “Then try to understand your long-term finances. What will your retirement or property investment be worth in the future? Does this align with what you are trying to achieve? And when do you need to access your money? The next step is to consider the products you need to help you achieve your goals.”

“Some people are confident enough to do all this on their own and can go straight ahead to find out what products are available. But if you’re not sure or your situation is more complicated then it’s worth talking to a expert,” says Horlington.

Why don’t women invest?

Horlington says, in her experience, women tend to want to invest for their family as well as themselves. Women are more likely than men to see their money as family money.

“It’s common for a woman to be in the mindset of having to put her children’s needs before her own. Investing or increasing their pension can take a backseat. I see this a lot when I talk to female clients and it’s all too familiar that they don’t have council because they are funding childcare, have taken a break from work to care for children or have worked part-time and have not been able to build as large a pension or savings pot as they would like, she says.

Horlington adds that, as in Parland’s case, it’s very easy for people to choose property investment because it’s something they know: they’ve bought a house before and know what the process is and what they need to do.

Get more women to invest

Horlington says it’s also common for female clients to feel insecure when it comes to investing.

Lloyd’s research found that women are significantly less likely to invest than men. Only 44 percent of women invest in the stock market compared to 65 percent of men. Women make up just 23 percent of investments in its higher-risk funds. This can be a problem, as it limits the potential for that money to grow more over the long term.

“If, like Parland, you have a long-term goal, say five years or more, investing may be the better option for you rather than saving in cash accounts,” explains Horlington. “Investing regularly means you can make steady progress and take advantage of compounding as a way to help you grow your money. It’s important to understand that investments fluctuate, so taking a long-term view gives you a chance to pull through all ups and downs. History shows that over the long term, money invested in the stock market will outperform cash savings accounts. So if women continue to save cash instead of investing, they will continue to fall behind their male counterparts.”

For Parland, Horlington suggests creating a regular, monthly investment in a ready-made mutual fund.

“It gets her into a habit without feeling overwhelmed with decisions to make,” says Horlington. She points to the customers ready-made investment options offered by Lloydswhere you can start with £50 a month or a £500 lump sum.

“In Parland’s case, because she has quite ambitious goals, she might want to consider a higher monthly amount,” explains Horlington. “But you don’t need loads of money. Just £50 gets you started, so anyone can do it.”

“Our ready-made investment options are designed to be easy to get started with,” says Horlington. “The only choice you need to make is how much to put in and then choose between three risk options. The word risk can be scary but it shouldn’t be what stops you. It depends on what you’re trying to achieve and how long you want to put away If you’re saving for a longer period of time, you may want to choose the higher risk option of the three because your money has had more time to smooth out fluctuations and eventually grow.”

The next step

“Investment products are changing and it’s easier now to make choices,” says Horlington. “Lloyd’s investment website has loads of help for first-time investors to get you started.”

Horlington adds that there are already around 6.8 million women investing in the UK, according to data from Boring Money. “This is great news, but there should be more, so women – just like men – can make the most of the benefits it offers to help them achieve their long-term goals.”

Lloyd’s ready-made investments are available to Lloyd’s Internet Banking customers.

For more information search Lloyd’s way of investingwhere you can read more about theirs Ready-made investments and Stocks and shares ISA.

The value of investments and the income from them may fall as well as rise, and you may get back less than you invest. The tax treatment depends on individual circumstances and may change in the future. Fees and charges apply.