Women and wealth: Closing the confidence gap

Studies show that women often make better investors than men: they’re more disciplined, stay focused, trade less and think long term. But why do many women fall behind financially? Women are less likely to invest in riskier assets, and so they tend to earn less on their investments. 

And that matters because, over time, investing and earning compound interest are among the most powerful ways to build wealth and bridge the financial divide. 

So, what’s holding back so many women from investing?

Why confidence matters more than competence

A lack of confidence is a key factor that keeps many women out of investing, says Jaclyn Archer, Senior Wealth Advisor at PWL Capital.

“They may not have been exposed to the investing world early on, and so they tend to shy away from these conversations,” she says.

Archer says women tend to have greater financial literacy than they think, and that the real issue here isn’t necessarily competence; it’s a lack of confidence. The key is to create opportunities for women to engage, catch up and learn. 

Why women face unique financial challenges

When it comes to women in investing, it’s not just about levelling the playing field. Women face unique challenges throughout their working lives that impact retirement planning. 

For example, women are expected to take time away from the workforce to raise children, leaving an income-earning gap that can span months to years. Research by Moms at Work in 2025 found that 15 per cent of women in the study were dismissed, laid off or had unrenewed contracts during maternity leave or upon returning to work. Another study by Maturn found that after maternity leave, 36 per cent felt sidelined by their companies. 

Women also tend to be more risk-averse than men, partly because of lower confidence and partly as a result of loss aversion—the tendency to feel the pain of losses more strongly than the satisfaction of gains. Add to this the fact that women, on average, live four years longer than men, and it becomes clear that women are at a disadvantage.

Making wealth management more accessible

Women need to gain the confidence to start taking control of their own finances, says Archer. 

One strategy PWL Capital’s advisors take is to create a welcoming, “no dumb questions” environment. Archer says their approach typically begins by helping clients clarify their goals and understand their risk tolerance, all while using straightforward language rather than financial jargon. PWL clients work collaboratively with their advisor to develop a plan tailored to their unique priorities.

“We do our best to simplify big ideas and instill confidence in a way that is not intimidating,” Archer says. “There are no dumb questions, and there is no mansplaining! We meet our clients where they are.”

Archer also recommends taking advantage of the many free financial education resources available online, including PWL Capital’s own podcast, YouTube channel, and webinars. These resources can help women build knowledge and confidence at their own pace.

For those just getting started, she says there are key things to remember. First, keep it simple by using diversified, low-cost index funds and consistently saving. 

“Ignore the headlines and anchor your financial decisions to a long-term plan. Find an advisor you trust and ask all the questions,” she says.

And for those who already have some knowledge but struggle to make their finances a priority or develop a plan that makes sense, follow through on that knowledge.

"I started working with a woman who was highly knowledgeable in investing but was a total victim of her own emotional biases. Her job and family also kept her incredibly busy, so her personal finances were never a priority. We built a financial plan for her and showed that her financial behaviour was costing her years of additional work. The cash balance in her portfolio, if invested, would allow her to retire six years sooner. She realized it was less about market timing and more about feeling in control of her financial life."

Finally, she says it’s important to invest the time it takes to work with an advisor to create a personalized plan, set clear financial goals, understand your risk tolerance, and trust your long-term goals. 

To boost your financial confidence and start investing smarter for your future, get in touch with PWL Capital today.