{"id":7015,"date":"2025-01-04T16:55:53","date_gmt":"2025-01-04T14:55:53","guid":{"rendered":"https:\/\/moneyhub.ee\/?p=7015"},"modified":"2025-03-28T15:37:56","modified_gmt":"2025-03-28T13:37:56","slug":"women-investing","status":"publish","type":"post","link":"https:\/\/moneyhub.ee\/en\/useful\/articles\/women-investing\/","title":{"rendered":"Why do so few women do investing?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"7015\" class=\"elementor elementor-7015\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-75b6cc2 e-flex e-con-boxed e-con e-parent\" data-id=\"75b6cc2\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-32f9a010 elementor-widget elementor-widget-shortcode\" data-id=\"32f9a010\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\"><nav aria-label=\"breadcrumbs\" class=\"rank-math-breadcrumb\"><p><\/p><\/nav><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-36d1805f e-flex e-con-boxed e-con e-parent\" data-id=\"36d1805f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-220d3519 ddddf e-flex e-con-boxed e-con e-child\" data-id=\"220d3519\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e7169a6 elementor-widget elementor-widget-heading\" data-id=\"e7169a6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Why do so few women do investing?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-6e9615a4 e-flex e-con-boxed e-con e-parent\" data-id=\"6e9615a4\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3fef0741 elementor-widget elementor-widget-image\" data-id=\"3fef0741\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"2560\" height=\"1709\" src=\"https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-scaled.jpg\" class=\"attachment-full size-full wp-image-16255\" alt=\"\" srcset=\"https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-scaled.jpg 2560w, https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-300x200.jpg 300w, https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-1024x683.jpg 1024w, https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-768x513.jpg 768w, https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-1536x1025.jpg 1536w, https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-2048x1367.jpg 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4318de0c e-flex e-con-boxed e-con e-parent\" data-id=\"4318de0c\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-38b4e669 elementor-widget elementor-widget-heading\" data-id=\"38b4e669\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Very few women invest, yet when they do, they statistically outperform men. Why then, are not more women investing?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1a6b5cd3 elementor-widget elementor-widget-text-editor\" data-id=\"1a6b5cd3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><b>Post summary:<\/b><\/p><ul><li aria-level=\"1\"><b>Why do so few women invest?<\/b><\/li><\/ul><ul><li aria-level=\"1\"><b>Why women need to invest more<\/b><\/li><li aria-level=\"1\"><b>How women are being supported with investing<\/b><\/li><\/ul><p><span style=\"font-weight: 400;\">Surprisingly (or unsurprisingly, depending on your view), very few women invest.<\/span><\/p><p><a href=\"https:\/\/www.fool.com\/research\/women-in-investing-research\/#:~:text=By%20comparison%2C%20men%20keep%2059,money%20in%20the%20stock%20market.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Only 21% of women invest, compared to 41% of men<\/span><\/a><span style=\"font-weight: 400;\"> who place their savings into investment portfolios.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">What is more puzzling is that women hold <\/span><a href=\"https:\/\/www.bcg.com\/publications\/2020\/managing-next-decade-women-wealth\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">32% of the world&#8217;s wealth.<\/span><\/a><\/p><p><span style=\"font-weight: 400;\">Why then are women such reluctant investors compared to their male counterparts?\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The truth is that women are missing out on investment returns they could earn from their money. By not investing, they lose out on alternative income streams and financial freedom.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">P2P investing has often been lauded as straightforward for all investor types. Yet, still, this is an area that is lagging in attracting female investors.<\/span><\/p><h2><span style=\"font-weight: 400;\">Why do so few women invest?<\/span><\/h2><h3><span style=\"font-weight: 400;\">Different end goals<\/span><\/h3><p><span style=\"font-weight: 400;\">When building wealth, most women aspire to develop financial security for their families and set aside wealth for retirement.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">For men, this is different, who tend to prioritise accumulating more personal wealth.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Even within the workplace, men are <\/span><a href=\"https:\/\/news.harvard.edu\/gazette\/story\/2020\/02\/men-better-than-women-at-self-promotion-on-job-leading-to-inequities\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">more ambitious in promoting themselves<\/span><\/a><span style=\"font-weight: 400;\"> for jobs than their female counterparts.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The same attitude prevails when concerning investing. Men seek to push themselves to obtain more financial wealth, whilst women have a lower investing rate.<\/span><\/p><h3><span style=\"font-weight: 400;\">Aversion to risk<\/span><\/h3><p><span style=\"font-weight: 400;\">In the UK, <\/span><a href=\"https:\/\/www.unbiased.co.uk\/news\/financial-adviser\/women-and-investing#:~:text=According%20to%20UK%20investment%20statistics,of%20those%20opened%20by%20men.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">only 7% of women invest in accounts<\/span><\/a><span style=\"font-weight: 400;\"> unrelated to the stock market.<\/span><\/p><p><span style=\"font-weight: 400;\">When women invest, they tend to take a more conservative attitude towards investments than their male counterparts, possibly due to lower confidence in accepting risk.<\/span><\/p><p><span style=\"font-weight: 400;\">Research from the <\/span><a href=\"http:\/\/arno.uvt.nl\/show.cgi?fid=81419#:~:text=It%20is%20found%20that%20women,in%20financial%20markets%20than%20man.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">University Van Tilberg<\/span><\/a><span style=\"font-weight: 400;\"> in the Netherlands backs up this attitude, stating that females are not keen on taking significant risks.<\/span><\/p><p><span style=\"font-weight: 400;\">However, this does not necessarily mean women are risk-averse or lack confidence.<\/span><\/p><p><span style=\"font-weight: 400;\">Instead, women tend to categorise how they view their finances.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">For instance, women often ring-fence areas of their money as not to be spent. For example, the <a href=\"https:\/\/moneyhub.ee\/bank-accounts\/\">savings<\/a> they hoard for their children&#8217;s school or university tuition \u2013 whilst some men (not all) take a more aggressive risk approach.<\/span><\/p><p><span style=\"font-weight: 400;\">However, a more conservative attitude seems to pay off since women tend to statistically <\/span><a href=\"https:\/\/www.ft.com\/content\/f3835072-66a6-11e9-9adc-98bf1d35a056\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">outperform men in investment returns.<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p><h3><span style=\"font-weight: 400;\">Male-orientated industry<\/span><\/h3><p><span style=\"font-weight: 400;\">Perhaps a key barrier for women wishing to invest is the nature of investment institutions.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Financial services, like several other industries, sadly <\/span><a href=\"https:\/\/www.insider.com\/male-jobs-women-underrepresented-numbers-2019-8#only-399-of-financial-analysts-are-female-4\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">still tends to be male-orientated<\/span><\/a><span style=\"font-weight: 400;\"> and not catering to female audiences.<\/span><\/p><p><span style=\"font-weight: 400;\">Less female financial advisors can discourage women from feeling confident and trust in investment products.<\/span><\/p><h3><span style=\"font-weight: 400;\">The gender pay gap<\/span><\/h3><p><span style=\"font-weight: 400;\">Sadly, despite women making up <\/span><a href=\"https:\/\/www.fool.com\/the-ascent\/research\/gender-pay-gap-statistics\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">47% of the labour force by 2024, they still only earn $0.80 for every $1 a man makes.<\/span><\/a><\/p><p><span style=\"font-weight: 400;\">Meaning that women are likely to have less disposable income than men because they earn <\/span><i><span style=\"font-weight: 400;\">significantly<\/span><\/i><span style=\"font-weight: 400;\"> less.<\/span><\/p><p><span style=\"font-weight: 400;\">With lower income, women cannot put more of their earnings aside. Most of their income will be required for <a href=\"https:\/\/moneyhub.ee\/household\/supermarket-watch\/\">household expenses<\/a> from paying rent or mortgage shopping and <a href=\"https:\/\/moneyhub.ee\/household\/energy\/\">bills<\/a>.<\/span><\/p><p><span style=\"font-weight: 400;\">With less remaining, women cannot invest as much, lowering their savings potential growth returns.<\/span><\/p><h2><span style=\"font-weight: 400;\">Why women need to invest more<\/span><\/h2><h3><span style=\"font-weight: 400;\">Women live longer<\/span><\/h3><p><span style=\"font-weight: 400;\">It&#8217;s no secret that, on average, women live <\/span><a href=\"https:\/\/www.worlddata.info\/life-expectancy.php#:~:text=Life%20expectancy%20for%20men%20and%20women&amp;text=On%20average%2C%20US%20women%20are,and%2074.9%20years%20for%20women.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">4-5 years longer than men.\u00a0<\/span><\/a><\/p><p><span style=\"font-weight: 400;\">Women must build up more wealth to sustain themselves over this four-year gap. However, with their salaries, on average, 20% lower than men&#8217;s, it is even harder to have enough in retirement to live longer.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Furthermore, putting away more during their working lifetime means women live on less during their employment years.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">This is why it is imperative that women ensure what savings they do have, grow exponentially.<\/span><\/p><p><span style=\"font-weight: 400;\">Stock market and P2P investing provide long-term growth, with the latter providing better returns by investing compound interest, helping cover the 4-5 year gap required in retirement.<\/span><\/p><h3><span style=\"font-weight: 400;\">State retirement benefits are inadequate<\/span><\/h3><p><span style=\"font-weight: 400;\">European countries&#8217; basic state pensions offer inadequate state retirement incomes.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Most people will have lower expenses in retirement. Living only off state benefits will make it challenging to live a comfortable life.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Investing can build up a solid base income in retirement for women to complement their state and private pensions. It could also allow women to retire earlier than the state retirement age.<\/span><\/p><h3><span style=\"font-weight: 400;\">Low returns on savings accounts<\/span><\/h3><p><span style=\"font-weight: 400;\">Inflation typically sits at a <\/span><a href=\"https:\/\/www.federalreserve.gov\/faqs\/5D58E72F066A4DBDA80BBA659C55F774.htm\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">minimum of 2% per year.\u00a0<\/span><\/a><\/p><p><span style=\"font-weight: 400;\">Yet, savings rates across many European countries do not offer returns even to match that.<\/span><\/p><p><span style=\"font-weight: 400;\">How can women (or even men) keep pace with the cost of living from any savings they make, let alone afford to save for retirement?\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">From stocks and shares to P2P, investing offers women (and men) an opportunity to earn higher returns on their savings than letting their cash sit deposited in a bank deposit account.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Earning above the inflation rate will make a difference when you need to cash it out.<\/span><\/p><h2><span style=\"font-weight: 400;\">How can businesses support women with their investing?<\/span><\/h2><h3><span style=\"font-weight: 400;\">Make it easy to manage<\/span><\/h3><p><span style=\"font-weight: 400;\">Financial investments always use language and products that are complex to understand and time-consuming to implement.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Both women and men are juggling careers, family and relationships, let alone attempting to understand investment strategies.<\/span><\/p><p><span style=\"font-weight: 400;\">It&#8217;s why we pay brokers to invest in funds on our behalf. In return, they (hopefully) obtain significant growth gains on our investments.<\/span><\/p><h3><span style=\"font-weight: 400;\">Reduce the minimum investment size\u00a0<\/span><\/h3><p><span style=\"font-weight: 400;\">As mentioned above, women have less disposable income than men, meaning many cannot afford to invest as much every month.<\/span><\/p><p><span style=\"font-weight: 400;\">Companies have reduced the minimum investment size to only <\/span><b>\u20ac10 a month<\/b><span style=\"font-weight: 400;\">, meaning more women and those with lower incomes are not frozen out from growing their capital further.\u00a0<\/span><\/p><h3><span style=\"font-weight: 400;\">Debunk the myth that investing is only for men<\/span><\/h3><p><span style=\"font-weight: 400;\">Women make up, on average, just under <\/span><a href=\"https:\/\/www.catalyst.org\/research\/women-in-financial-services\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">half of those employed in the finance industry<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The gap is closing; Deloitte produced research stating it should increase in the next decade, with female leaders growing to 30% of the industry.<\/span><\/p><p><span style=\"font-weight: 400;\">Although the gap still has far to go, the myth that finance is the realm of a patriarchal-dominated sector is finally eroding.<\/span><\/p><p><span style=\"font-weight: 400;\">With more women taking up leadership positions in financial institutions, removing this harmful myth will convince more women that investing is for them and not only men.\u00a0<\/span><\/p><h2><span style=\"font-weight: 400;\">Investing is for all<\/span><\/h2><p><span style=\"font-weight: 400;\">Investing shouldn&#8217;t be about becoming super-wealthy.<\/span><\/p><p><span style=\"font-weight: 400;\">Instead, it&#8217;s about prioritising women&#8217;s future and ensuring enough at the end of their lives.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">With investing, women can invest hands-off, earn higher than average returns, and help close the financial gender gap.<\/span><\/p><p><span style=\"font-weight: 400;\">Women are just as capable of handling their and their family&#8217;s financial accounts and have demonstrated that they can outperform their male counterparts.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Nevertheless, getting women to leap of faith and invest can be challenging if they have never done it before.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Why do so few women do investing? Very few women invest, yet when they do, they statistically outperform men. Why then, are not more women investing?<\/p>\n","protected":false},"author":3,"featured_media":16255,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[21,20],"tags":[],"class_list":["post-7015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-useful"],"acf":[],"blog_post_layout_featured_media_urls":{"thumbnail":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-150x150.jpg",150,150,true],"full":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-scaled.jpg",2560,1709,false]},"categories_names":{"21":{"name":"Articles","link":"https:\/\/moneyhub.ee\/en\/category\/useful\/articles\/"},"20":{"name":"Useful Info","link":"https:\/\/moneyhub.ee\/en\/category\/useful\/"}},"tags_names":[],"comments_number":"0","rttpg_featured_image_url":{"full":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-scaled.jpg",2560,1709,false],"landscape":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-scaled.jpg",2560,1709,false],"portraits":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-scaled.jpg",2560,1709,false],"thumbnail":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-150x150.jpg",150,150,true],"medium":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-300x200.jpg",300,200,true],"large":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-1024x683.jpg",800,534,true],"1536x1536":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-1536x1025.jpg",1536,1025,true],"2048x2048":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/01\/blond-working-woman-holding-smartphone-glasses-2048x1367.jpg",2048,1367,true]},"rttpg_author":{"display_name":"David Bailey","author_link":"https:\/\/moneyhub.ee\/en\/author\/davidbailey\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/moneyhub.ee\/en\/category\/useful\/articles\/\" rel=\"category tag\">Articles<\/a> <a href=\"https:\/\/moneyhub.ee\/en\/category\/useful\/\" rel=\"category tag\">Useful Info<\/a>","rttpg_excerpt":"Why do so few women do investing? Very few women invest, yet when they do, they statistically outperform men. Why then, are not more women investing?","_links":{"self":[{"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/posts\/7015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/comments?post=7015"}],"version-history":[{"count":0,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/posts\/7015\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/media\/16255"}],"wp:attachment":[{"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/media?parent=7015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/categories?post=7015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/tags?post=7015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}