Why women invest less often – and why that needs to change

Did you know that 40% of Peaks customers are women? Peaks stands out in the market, where the average percentage of female investors is below 20%. Then why are women still in the minority when it comes to investing, even when apps like ours have made the world of investing much more accessible? This article explores some explanations for the 'gender investment gap' and why we believe it’s essential to close it. At the time of writing, Peaks' main userbase resides in the Netherlands – this article caters mainly to Dutch residents.

Why do fewer women invest?

 1. History has worked against women

One of the biggest reasons behind the investment gap lies in history. Did you know that, not so long ago, a woman in the Netherlands was considered legally 'incapable' of handling finances once she married? This meant that she needed her husband’s permission for many ordinary activities—like buying clothes, appliances, or even travelling. She couldn’t open a bank account, take out a mortgage, or get insurance—let alone invest. The only financial decision she could make was how to spend the 'household money'… which was given to her by her husband.

In short, married women were financially dependent on their (male) partners. This changed only in 1956 (less than 100 years ago), thanks to a motion by MP Corry Tendeloo. Nonetheless, this legal limitation put women at a financial disadvantage for generations. Even today, while women are often more aware than men of what’s in their current accounts,  they are less informed about long-term finances.

2. Women still earn less money

Another factor is that women still earn less than men. This also has historical roots: in the late 19th century, the 'breadwinner model' emerged, where the man worked outside the home while the woman managed the household. In this arrangement, women had no personal income.

Today, 77% of Dutch women are employed—a big improvement. However, 67% of these women work part-time, which often means earning less than they would in a full-time role. Women are also still paid less than men for the same work and are more likely to work in lower-paid sectors (like childcare, healthcare, and cleaning). The result is that women often have less discretionary income, making it harder to invest.

3. The investment world is tailored to men

Disclaimer: there’s nothing wrong with men, nor with men who invest. But because the investment world is predominantly male, women are less likely to feel at home in it. Financial services, products, and courses are still rarely tailored to women’s needs. Marketing and language are often aimed at a male audience. International studies show that 67% of women feel misunderstood or unheard by the financial services sector. This is yet another reason why you encounter far fewer women in the world of investing.

Why we need to close the gender investment gap

Fortunately, the number of female investors is on the rise. But we think it can rise faster and further. If so, we could close the investment gap alongside the “pay gap.”

1. Women’s financial position needs to improve

According to Statistics Netherlands (CBS), 66% of Dutch women are economically independent, meaning 44% are not. Economic independence means earning at least the minimum wage, enough to live on. This translates to 1.6 million women in the Netherlands who don’t have sufficient income to support themselves independently.

Many of these women are “collectively self-sufficient” with a partner, but if their partner is no longer there, their income may be inadequate. This makes women financially vulnerable. By gradually building wealth (through saving or investing when possible), women can create a safety net for tough times and strengthen their financial position.

2. Women deserve a better retirement

Women also fare worse when it comes to retirement income. Research by Netspar shows that women, on average, receive 40% less pension than men. This massive gap is partly because the current generation of retirees includes many women who worked fewer hours (and for lower wages) than men.

The current generation of working women also accumulates less pension, often due to part-time work, lower salaries, and less favourable employment contracts. Meanwhile, women tend to live longer than men, so their pension needs to last longer. Building a retirement fund through an investment account is one way to help close a pension gap if one exists.

3. Women are better investors

There’s another reason we believe more women should invest: they are, on average, better at it than men. This is often due to personality traits more common among women, such as being more risk-averse. This means they’re less likely to invest in “risky” assets (with a high chance of loss) and are better at diversifying their portfolios.

Women also tend to research the companies they invest in more thoroughly, are less swayed by market fluctuations, and stick with their chosen investment strategy for the long term. This approach is key to achieving better returns over time.

Want to start investing?

If you’re interested in investing but still unsure, here are a few things you can do:

• Educate yourself. You can read books on investing and finance (like Girls that Invest by Simran Kaur or the Dutch books Blondjes beleggen beter by Janneke Willemse or The Female Fix by Marianne Bruijn), or browse through our blog articles.
• Consider a course. There are an increasing number of online investing courses available, many aimed specifically at women.
• Ask us questions. If you have specific questions about Peaks, reach out to our customer service team.

Remember, investing involves risks. There’s always a chance of losing some or all of your initial investment.