On International Women’s Day, we take a look at the reasons why women don’t invest enough and explore strategies to encourage women to build and protect wealth to safeguard their future financial security.
Women don’t invest enough
It’s difficult to find up-to-date, accurate figures on women and investing. Certain studies suggest that women are more successful than men when they do invest, while others question this. But one thing is certain: women don’t invest enough.
A 2024 Women and Finances Survey from SoFi found that 64% of women have never invested, compared to 47% of men.
This matters because it impacts women in retirement. Longer lifespans and less savings mean that women are more likely than men to suffer financial hardship in their later years.
The reasons why women don’t invest
There are two main reasons why women don’t invest:
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They don’t have the money to invest
The gender pay gap (working women full-time earn 84% of what men do), the gender pension gap, the gender wealth gap, the glass ceiling: there’s no denying that women are financially disadvantaged compared to men.
Less disposable income inevitably means less money left over to save and invest. Hence yet another gap: the gender investment gap.
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They don’t have the confidence to invest
Women, much more than men, struggle to see themselves as investors. They imagine financially savvy young hotshots à la Wolf of Wall Street armed with mountains of cash and the tricks of the trade frantically buying and selling shares to make a quick buck.
Too often they fear the perceived risk of stock market investments and making a loss, opting instead to keep their money in bank savings accounts where it struggles to keep pace with inflation. As a result, they miss out on the higher returns offered by a long-term investment strategy in the stock market.
The reality is that the vast majority of investors are ordinary people with a rudimentary knowledge of stock market terminology, investing to achieve their financial goals, most often, a comfortable and financially secure retirement.
The key to success is investing over the long term with a measured strategy that balances risk and reward. And that’s where having a financial adviser on board can really make a difference.
Women and wealth: Breaking the mould
If you would like to break the mould and be among the 36% of women who do invest for a secure future, we can help!
Here at Infinity, we have spent two decades helping expatriates to achieve lasting financial security. And we love to support women and make a meaningful contribution towards narrowing the investment gender gap.
If you are an expatriate woman in Asia, working with one of our professional advisers will empower you to make informed savings and investment decisions to build your confidence and your wealth.
What does that look like?
- Listening to understand your financial goals
- Evaluating your current financial situation
- Assessing your tolerance to risk
- Developing a strategy aligned with your goals and risk profile
- Visually demonstrating what your financial future could look like with detailed cash-flow forecasts
- Clearly explaining investment options and strategies
- Enabling you to implement a comprehensive plan to build and protect your wealth
- Monitoring progress and readjusting your investments as required
The earlier you start, the easier it will be to achieve your financial goals.
Contact us today and let’s get started!
A leading provider of expat financial services and wealth management services across Asia.
