The Truth About Women and Investing: Insights and Recommendations

Empowering Women: Insights on Investing and Financial Independence

It's never easy to talk about unexpected truths because we all have different expectations and ideas of what is true. For example, you may or may not be surprised to learn that women's portfolios often outperform men's. Or that almost half the women in one survey said they aren't sure how to invest.

1. Women get better results when they invest

Research by Fidelity looked at the results of over 5 million customers over a 10-year period. It found women's portfolios performed 0.4% better than men's. Several other studies show the same thing. Fidelity's research shows that 68% of women were putting money aside for retirement in 2023. This is up from 66% in 2019.

2. Women have less money to invest

On average, women will earn less in their lifetimes than men. This makes it harder to put money aside in a savings account and hampers their ability to invest for the future. Women earn about $0.83 for every $1 a man earns, per data from the Bureau of Labor Statistics. 44% of women told Fidelity they are caregivers in one way or another.

3. On average, women live longer

The life expectancy for women is 79.3 years and men at 73.5 years. It can be challenging to cover medical and care bills if you need to stretch what you have for longer. Almost half of women aged 55 to 66 have no personal retirement savings. The sooner you start planning for retirement, the better.

Key takeaway: The financial deck is stacked against women, particularly when it comes to old age. It is all too easy to get disheartened and wind up doing nothing. Instead, focus on the steps you are able to take. Set yourself achievable goals and celebrate when you reach them.