More men take out stocks and shares ISAs than women, despite women holding the majority of ISAs, according to HMRC data.

It showed that women hold 52% of all ISAs, but 1.9m men took out a stocks and shares ISA in 2021/22, while only 1.41m women did.

Newer data from Hargreaves Lansdown to the end of 2024 shows that 61% of people who hold a stocks and shares ISA with the firm are men, with the percentage remaining steady for the past three years.

However among HL customers, the average balance in stocks and shares ISAs is higher among women than men.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “Despite women holding more ISAs overall, the fact that they’re focused on cash means men stand a better chance of growing their ISA pots over time, and women run the risk of running to stand still.

“Given that stocks and shares have more growth potential than cash, there’s the risk that the gender ISA gap is only going to widen over time.
”


She said women’s reluctance to invest owes a great deal to the fact that on average they earn less than men, and the more you earn, the more likely you are to have an investment ISA. 

She pointed out that women tend to have less secure incomes, because they’re more likely to have breaks in their career for caring responsibilities or work part time and face a drop in income. “It means some may feel they cannot face the risk involved with investment.”

HL figures showed that men were more likely to have paid a lump sum into their stocks and shares ISA than women over the previous 12 months and were more likely to set up regular investments.

Ms Coles said: “Even when you factor in the gender pay gap, it doesn’t explain everything, because when you look at the gender ISA gap between men and women, it is opening up by the time they reach the age of 19.

“At this point there’s little difference between the incomes of men and women, and the pay gap doesn’t ready bed in before the age of 40. It means more needs to be done to connect women with the potential of investment.”