Investing Gender Gap Shows Signs Of Closure
For decades, there has been a significant gender investing gap, but now there’s evidence that it’s closing. Studies from Fidelity Investments and the CFA Institute in the United States indicate that 67% of women are investing, outside of retirement plans, a significant increase from 44% in 2018.
More Gen Z and Millennial women are investing than the generations before them: Generation Z: 71% | Millennials: 63% | Generation X: 55% | Baby boomers: 57% | Source: Fidelity Investments
“I’m encouraged by the number of young women I have had the opportunity to sit down with and discuss their financial goals and plan for their futures. Taking this first step in their financial journey is an important move in the right direction” said Makeba DeShields Senior Investment Advisor at LOM Financial.
“A one-size-fits-all approach fails to account for factors such as longer life expectancies, career breaks for caregiving, and the gender pay gap, all of which can influence a woman’s investment strategy and financial planning needs.
“Moreover, women’s financial goals and risk tolerance can differ from men’s, necessitating a different advisory approach. Women tend to be slightly more conservative investors.
“Women are aware they need to plan for their long term financial goals,” she added. “I think that is the power of living in the age of access to information. The younger generations are more aware how critical it is to plan for your financial future.”
