Youthful ladies are narrowing the gender investing hole, research finds
Younger women are closing the gender investment gap.
Almost three-quarters of millennial women between the ages of 25 and 40 are now investing outside of their retirement accounts. Younger women are also more likely to invest for specific goals than women of other age groups.
This is shown by new findings from Fidelity Investments’ Women and Investing Study 2021, which showed unprecedented growth during the pandemic.
“It tells the story of young women ‘s persistent thirst and interest in getting more out of their money,” said Lorna Kapusta, head of Women Investors and Customer Engagement at Fidelity.
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In fact, two-thirds of young women see the value of investing in a specific goal compared to 56% of young men, the new results show.
These results are due to the fact that many women’s retirement plans lag behind their male counterparts.
According to a February 2021 survey by the National Institute on Retirement Security, 60% of women are concerned about retirement, compared with 51% of men.
Before the pandemic, women were retiring $ 70,000 less than men, a report from Bank of America Merrill Lynch found, and nearly one in five women had saved nothing in 2020, according to a CNBC poll.
One of the biggest regrets for boomer women is not investing more when they were younger.
Head of Female Investors and Loyalty at Fidelity
“One of the biggest regrets for boomer women is not investing more when they were younger,” said Kapusta. “But younger women are realizing that investing is an important way for them to achieve their goals.”
While the study shows that most women believe that “picking individual stocks” is a necessary skill to start investing, the younger generation has reformulated those perceptions, Kapusta said.
“This is an important change for women as a whole,” she said. “It’s a real turning point.”
Lack of investment confidence
Although younger women have progressed, trust is still lacking and this spans generations.
“Two-thirds feel uncomfortable in their ability to make investment decisions,” said Kapusta. “We actually see that [younger women] are very similar to the older generation. “
In addition, only 35% of women feel “confident” that their savings outside of retirement are appropriately invested, the results show.
But younger women are most likely to use resources to improve their knowledge and skills, which the study suggests could shift these trends.
For younger women, this is “very deliberate” and at a higher rate than for older generations, Kapusta added.
Fidelity Investments’ Women and Investing Study 2021 includes the results of a nationwide survey of 2,400 adults in July, split between men and women. Respondents were 21 years or older, had an income of $ 50,000 or more, and were contributing to a company retirement plan.