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

Parland, 47, and her partner John, have children aged 23, 14, 10 and six. They are eager to invest to help build their long-term savings. Parland recently invested in two properties currently undergoing renovation. The goal is for the properties to generate usable income in retirement.

She now wants to learn more about stock market investing, even though it’s not something she’s ever done. “I had never considered this question before because I thought real estate was easier. It’s something I understand better and my partner is a builder, so he can help me with renovations,” says Parland. “But changing rules around taxes, inheritance and so on mean I feel like it might not be as easy as it used to be.”

Parland would also like to retire in his early 60s and move his children into homeownership. In the meantime, she wants to make sure she doesn’t miss out on other opportunities to grow her money.

“I want my family to live a good life and if opportunities present themselves, we can take them. I’d like to learn more about investment options to ensure I’m not missing out on anything that could make my money grow faster and in a tax-efficient way,” she says.

Take your first steps

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

“We recommend that everyone has a three-month reserve of accessible savings,” says Horlington. “Then try to understand your long-term finances. What will be the future value of your pension or property investment? Does this match what you are trying to achieve? And when will you need access to your money? The next step is to think about what products you need to help you achieve your goals.

“Some people are confident enough to do all this themselves and can inquire directly about the products available. But if you’re unsure or your situation is more complicated, it’s worth talking to an expert,” says Horlington.

Why don’t women invest?

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

“It’s common for a woman to feel like she has to put her children’s needs ahead of her own. Investing or increasing their pension may take second place. I see this a lot when talking to clients and it is well known that they can’t afford it because they are paying for childcare, have taken a break from work to care for their children or worked part-time and did not work. They were able to build up as big a pension or savings fund as they wanted,” she says.

Horlington adds that, as in Parland’s case, it is very easy for people to choose to invest in real estate because it is something they are familiar with: they have already bought a house and know what the process and what they need to do.

Encourage more women to invest

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

Lloyds 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 highest-risk funds. This can be problematic because it limits the growth potential of that money over the long term.

“If, like Parland, you have a longer-term goal, say five years or more, investing might be the better option for you rather than saving in cash accounts,” says Horlington. “By investing regularly, you can make steady progress and benefit from compounding 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 weather the ups and downs. History shows that in the long run, money invested in the stock market will outperform the interest earned on cash savings accounts. So if women continue to save rather than invest, they will continue to fall behind their male counterparts.”

For Parland, Horlington suggests setting up a regular monthly investment in a ready-made investment fund.

“This allows her to get into the habit without feeling overwhelmed by the decisions she has to make,” says Horlington. It indicates to customers the Ready-made investment options offered by Lloydswhere you can start with £50 per month or a lump sum of £500.

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

“Our ready-made investment options are designed to be simple to help you get started,” says Horlington. “The only choice you have to make is how much am I going to invest 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 accomplish and how long you want to set that money aside for. If you’re saving over a longer period of time, you may want to choose the riskiest option of the three because your money has more time to smooth out fluctuations and eventually grow.

Next steps

“Investment products are evolving and it’s now easier to make choices,” says Horlington. “The Lloyds investments website has plenty of help for newbie investors so you can get started.”

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

Lloyds ready-made investments are available to Lloyds Internet Banking customers.

For more information, search Lloyds investment methodswhere you can learn more about their Ready-made investments And Stocks and Shares ISA.

The value of investments and the income from them can go down as well as up and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future. Fees and charges apply.