Women have more financial power than ever before — 45% of them earn more or as much as their husbands, they currently control more than $10 trillion of the total U.S. household financial assets, and they may control trillions more in the ongoing transfer of wealth between generations. According to a 2025 report, women’s purchasing power added trillions to the economy in 2024. Not only that, the participation of women ages 25 to 54 in the labor market grew twice as fast as that of men in 2024.
Yet there’s one thing many women aren’t doing with all their monetary might: investing. An eye-opening 64% percent of women have never invested, SoFi’s 2024 Women and Finances Survey found. That’s 17% more than the number of men (47%) who have never invested.
This investment gender gap could have serious repercussions for women now and in the future. Investing can be an important tool to help build wealth. The sooner an individual begins investing, the more time their money has the potential to grow. Almost half (48%) of female investors say their biggest regret is not investing sooner, according to another 2024 survey by SoFi. And because women outlive men by about six years, their money needs to last longer.
So why aren’t women investing? And what can be done to reverse this troubling trend? Read on to learn about the obstacles holding women back, and ways they can break through and start investing (literally!) in their future.
Table of Contents
Key Points
• Sixty-four percent of women have never invested compared to 47% percent of men, creating an investment gender gap.
• Major barriers preventing women from investing include lack of confidence in their abilities, insufficient funds due to the wage gap, and fear of losing money.
• Research shows women outperform men as investors through disciplined strategies, buy-and-hold approaches, and achieving higher risk-adjusted returns with less speculative trading.
• Investing sooner than later gives women the opportunity to benefit from compounding returns, which is particularly crucial since women live approximately six years longer than men.
• Practical investment strategies for women include automating retirement account contributions, utilizing fractional shares for smaller investments, setting clear financial goals, and seeking knowledge through education and support.
The State of Women and Investing in 2026
*Priorities for next two-to-three months.
Source: SoFi 2024 Women and Finances Survey
First, let’s be clear: It’s not that women aren’t interested in investing. They are! In fact, their financial priorities are similar to men’s, per the Women and Finances Survey findings. The desire to save for retirement and invest more money is nearly equal between the two genders.
And when they do invest, women tend to employ longer-term strategies and therefore tend to get better returns.
Where the difference between the two genders comes into play is what men and women are actually doing with their money. In the short-term, women are focused on keeping up with their living expenses (50% of women compared to 41% of men), while men are more likely to invest and save for retirement.
|
Financial Priorities for the Next Year |
||
|---|---|---|
| Women | Men | |
| Keeping up with living expenses | 50% | 41% |
| Saving for retirement | 44% | 42% |
| Investing more of my money | 41% | 45% |
Source: SoFi 2024 Women and Finances Survey
The Great Wealth Transfer
By 2030, women in the U.S. are expected to control 40% to 45% of financial assets — up from about 33% currently, according to a report by McKinsey & Company that calls women the “new face of wealth.” Contributing to this dynamic are a number of trends, the report says, including a decline in marriage rates and a rise in divorce rates, women’s growing participation in the labor force, the concentration of wealth in the Baby Boomer generation, women’s longer lifespans, changing attitudes toward women and money, and the fact that women are making more major household financial decisions.
Yet still, despite their burgeoning financial control, women aren’t investing as much as men are. These are the reasons why they aren’t — no matter how much they might want to.
1. The Confidence Conundrum
For many women, uncertainty about investing, and how good they might be at it, is holding them back. Women worry they don’t know enough about investing to get started. Nor do they feel confident about making investments — 43% say they don’t have the confidence to do it “right.”
|
Women’s Top Reasons for Not Investing |
|
|---|---|
| Lack of funds | 53% |
| Lack of investing knowledge | 46% |
| Lack of confidence to do it “right” | 43% |
Source: SoFi Survey, March 2024
Even when women do take the plunge and start investing, they still feel unsure of themselves. Only 57% of female investors think of themselves as investors. The rest believe they don’t have the experience to be considered investors.
That may be because women have a very specific view of what an investor is — typically as finance professionals or individuals who are extremely experienced and savvy about the investing process and the stock market.
How Women Describe an Investor:
“A finance bro. Very inaccessible to someone who doesn’t know all the terminology and ins and outs of the stock market.”
“A person who is well-educated and knows the tricks of the trade of investing.”
Source: SoFi 2024 Women and Finances Survey
Women’s lack of confidence extends beyond investing. They also have doubts about how well they’re managing their money overall compared to men.
|
Confidence in Managing Money |
|
|---|---|
| Women | 40% |
| Men | 54% |
Source: SoFi 2024 Women and Finances Survey
2. The Wage Gap Still Exists
Another investment obstacle for women: Having the money to invest. While their financial power has grown, especially in the last few years, women continue to earn less than men do. For every $1 men earn, women earn 85 cents — and this gap has only narrowed slightly over the past 20 years, according to a 2025 analysis by the Pew Research Center.
| Year | Women’s earnings on the dollar | Men’s earnings on the dollar |
|---|---|---|
| 2024 | $0.85 | $1 |
| 2002 | $0.80 | $1 |
Source: Pew Research Center
It stands to reason that when you’re not earning as much, you may not have extra money to invest. As noted above, in a March 2024 SoFi Survey, 53% of women said they aren’t investing because they don’t have the funds to do so.
How Women Describe an Investor:
“I think of myself and how I’m late to the investing world. I am now as of the last 3 years able to invest because my income exceeds my expenses.”
Source: SoFi 2024 Women and Finances Survey
3. The Retirement Gap: Living Longer, Saving Less
Financial worries about the future weigh on women’s minds as they think about retirement planning. For many, achieving their goals feels like a long-shot. For example, 58% of women worry their money won’t last through their retirement.
Yet women are less likely than men to understand how investing now could help them reach those goals, and they don’t invest as much in the stock market and for retirement as men do. For instance, while men invest 28% of their income for retirement, women invest just 19%. Yet women live almost six years longer than men do, which means they need their money to last for a longer period of time.
Source: SoFi 2024 Women and Finances Survey
4. The Fear Factor
It’s tough to invest money if you’re worried you’re going to lose it, and that’s a very real financial fear women grapple with. Thirty-two percent say the reason they don’t invest is the concern that they’ll lose their money or make a bad investment.
That may explain why women are investing significantly less than men in the stock market — 38% of women have invested less than $2,000, compared to 27% of men. And 25% of men have $50,000 or more invested in the markets vs. 14% of women.
How Women Describe an Investor:
“How women describe an investor: “A unicorn.”
Source: SoFi 2024 Women and Finances Survey
Source: SoFi 2024 Women and Finances Survey
When women do invest, they are typically more conservative in their investment choices, and they don’t have as much portfolio diversification as men do.
Source: SoFi 2024 Women and Finances Survey
Why Women Make Excellent Investors
However, what we traditionally think of as the face of finance may be changing. While women are investing less frequently, research consistently shows that when they do invest, the results tend to be better than those of their male counterparts. For example, according to an earlier 2018 study from Warwick Business School, the annual returns on women’s investment portfolios outperformed men’s by 1.8%, while trading fewer times per year on average.
More recently, a 2025 report by the Wells Fargo Investment Institute found that women’s risk-adjusted investment returns were higher than men’s. In addition, women-led joint accounts outperformed those led by men on an absolute basis.
The study shows that women tend to be more disciplined investors than men and demonstrate a willingness to learn, which can work in their favor. And while women tend to be more risk-averse, when they do take investing risks, they tend to get higher risk-adjusted returns than men do. They invest in fewer speculative stocks than men, and they are more apt to sell stocks that are losing money.
Women are also more likely to create a financial plan and stick to it, the report found. As a result, they generally don’t make frequent trades or try to time the market. Their buy-and-hold approach tends to lead to better overall results, study after study has shown.
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Strategies to Close the Gender Investing Gap
Women have strengths and innate advantages that can be harnessed to work in their favor. We know that female investors are great investors and that there are some truly powerful women investors out there.
As detailed above, women tend to get better returns on their investments as a result of leveraging longer-term strategies. Plus, the fact that women are more conservative in their investing strategies than men is not necessarily a bad thing. It typically means they are less likely to act impulsively, follow investing trends, or exceed their risk tolerance.
The trick is for them to get started with investing. And investing for women begins, of course, with money. Almost half of women say the biggest investment motivator is not wanting to live paycheck to paycheck, which is true of men, as well.
Source: SoFi 2024 Women and Finances Survey
The Power of Compounding
The earlier women start investing, the more time their money has to grow, thanks to compounding returns. Here’s how compounding works: When the money a person invests earns a profit and is then reinvested, the investor may then earn money not only on their original investment but also on the returns. So, essentially, they are earning money on a bigger sum. Over time, their gains could multiply. And the longer the period of time they invest, the more time their returns have to potentially compound.
This process could have a profound impact on women and retirement, for example, since a woman who starts investing in her twenties or thirties has more time to build a retirement fund and potentially benefit from the power of compounding.
6 Steps to Start Investing Today
With investing, tapping into your personal motivation is key. Whether it’s building up your savings, putting together enough money for a house, or building your retirement nest egg, make that your North Star and begin working toward that goal. And remember, it’s never too late (or too early) to start. Here’s how to do it:
1. Define Your “Why” and Time Horizon
Setting your financial goals — or your investing “why” — can help you determine when you might need the money, which in turn can affect how you invest and what you invest in. This is the foundation of your plan: a goal, your time horizon, and your initial questions about which investments are best for your situation.
If you’re saving for retirement, a retirement income calculator can help you estimate how much money you’ll need for your post-work years.
2. Leverage Financial Education Tools
Understanding how the market works can help women feel more confident about investing. But they can’t do it alone. One of the most important things in your investing journey is finding like-minded people who can have those “let’s figure it out” conversations with you. It’s also an easier way to learn the language around investing, and become familiar with how to trade stocks and other investment options. It can also be a good idea to talk to a financial advisor to review your individual circumstances.
Reading financial journals, following the financial news, and listening to money podcasts can also help keep you informed. Knowledge is power.
3. Audit Your Budget for Investable Cash
Having enough money to invest is a major impediment for women. But know this: No amount is too small to invest.
Even if you’re budgeting on a tight income, there may be some fat you can trim to free up some money for investing. Look at your expenses, especially your discretionary expenses (the things you want rather than need). Perhaps you can ditch your gym membership and start a running program instead. Maybe you don’t need all the streaming subscriptions you have. Or you could do more cooking at home and cut back on restaurant meals. These are just examples — determine what works for you.
Use this “found” money to start investing. If your employer offers a 401(k), enroll in it and contribute as much as you can. Aim to contribute at least enough to get your employer’s matching contribution, which is, essentially, “free” or extra money. Many investment options will allow you to contribute smaller amounts if you set up automatic transfers or contributions to the investment account.
4. Consider Robo-Advisors or Target Date Funds
When investing for retirement, consider target-date funds that automatically adjust their asset allocation over time. The target date refers to the year you would need the money for retirement, such as 2045. Typically, these funds start with investments with higher growth — and higher risk — potential, and then gradually change to more conservative investments over time. You can choose target date funds through a 401(k) or by opening an IRA. However, it’s important to note that these funds may have higher fees and other costs.
Another automated investing technique some investors may want to explore is automated investing, which involves a robo advisor. Robo advisors use computer algorithms to recommend investments, based on the investor’s goals, time horizon, and risk tolerance. This might be an option for an investor who would like some guidance, but doesn’t want to incur the costs of a traditional financial advisor.
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5. Start Small With Fractional Shares
An option for investors who are investing smaller sums is fractional shares. These are a portion of a share of stock rather than an entire share. Investors can invest smaller amounts of money to buy fractional shares of stocks they’re interested in, but otherwise couldn’t afford.
Buying different types of fractional shares could help spread a small investment across a variety of companies for broader market exposure. Just be aware that if the underlying stock doesn’t have a lot of market demand, fractional shares could take longer to sell. Also, depending on the brokerage, fractional shares may have higher transaction fees.
6. Automate Your Contributions
Automating contributions can make investing easier (since you don’t have to do it manually) and more consistent. You can set up automatic contributions to your IRA, 401(k), and other investment accounts.<
The Takeaway
Once you’ve started investing, keep at it. The more you do it, the more confident and capable you’re likely to feel. And you’ll also have the satisfaction of knowing you’re taking concrete steps to help secure your financial future.
Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.
FAQ
Do men invest more than women?
Yes, research shows that men are more likely to invest — and to invest more money — than women. According to SoFi’s 2024 Women and Finances Survey, 64% of women say they have never invested, compared to 47% of men.
In addition, the survey found that 25% of men have $50,000 or more invested in the stock market vs. 14% of women, while 38% of women have invested less than $2,000 in the market (compared to 27% of men).
What is the ‘gender investing gap’?
The gender investing gap refers to the fact that men are far more likely to invest than women are. In fact, 64% of respondents to SoFi’s 2024 Women and Finances Survey said they have never invested. Some reasons for this include: Women are focused on keeping up with their living expenses, while men are more likely to invest and save for retirement; women earn less money than men and thus have fewer dollars to invest; and women say they lack confidence in their ability to invest.
What are the best investment strategies for women?
Investment strategies for women, as with all investors, may include defining their investment goals and time horizon, establishing a strong financial foundation by learning more about the market and how it works, starting sooner than later (even with small amounts) so they can tap into the long-term power of compounding returns, and automating their contributions to a retirement account like an IRA and 401(k).
How does the wage gap affect retirement savings?
Due to the wage gap, for every $1 men earn, women earn just 85 cents. Because they’re not earning as much, women may not have extra money to invest. For example, in SoFi’s 2024 Women and Finances Survey, 53% of women said they aren’t investing because they don’t have the funds to do so.
Is it too late for women over 50 to start investing?
No, it’s definitely not too late for women over 50 to start investing. In fact, this is a critical time for women to invest to build a retirement nest egg. Women in this age group may be in their peak earning years, so they may have more money to invest now. In addition, they can take advantage of catch-up contributions. The IRS allows people aged 50 and up to make extra contributions each year to retirement accounts like IRAs and 401(k)s. Annual catch-up contributions could substantially boost women’s savings.
For the SoFi 2024 Women and Finances Survey we surveyed 636 SoFi paid product members across the U.S. A paid product member is anyone with an open account with SoFi. Gender was self-identified through the survey. 314 women, 280 men, 13 gender non-conforming, and 29 preferred not to identify.
For the March 2024 SoFi Survey, we surveyed 1,500 women with a household income of $100K+ and at least some college completed.
Photo credit: iStock/Hiraman
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