Who runs the world? Damn straight. Despite this though, we ladies are still not stepping up to the investment stage, and this is a big problem because – among the many ups and downs of being a woman – we all live longer, take longer and more frequent career breaks for child rearing and get paid less than men.
So, basically, we need more money. Money we can only bag by investing because cash is trash when it comes to trying to keep up with inflation, especially since the financial crisis thanks to rock bottom interest rates that have kept the stock market afloat, but cash savers adrift.
However, according to research by price comparison site Money Guru, more than half of women (52 per cent) have never owned any investment products, compared to 37 per cent of men. And that is despite the fact we are statistically better at it!
Commenting on the research, Deborah Vickers, channel director at Money Guru says: “We have never seen a gender gap when it comes to applications for credit, which is great to see. It shows real progress that just as many women as men are taking the lead when it comes to finding the right deals for them.
“However these stats show that there is a still long way to go to empower women when it comes to their finances, especially if it is leaving them worse off in later life. Aversion to risk is something that we need to address, in particular when it comes to supporting women to be more confident with investment.”
To help crystalise our minds, Money Guru has compiled the top 6 reasons why women need to invest more than men.
1. Women Need A Bigger Pension
Women are short-changed in a whole host of different ways throughout their working life. For example, the current state pension pay out for women is £125.98 per week, compared to £153.86 per week for men, meaning that over a typical 20 year retirement period women could end up £29,000 (67 per cent) worse off.
Everywhere in the world, women tend to live longer than men. In the UK, it’s on average by four years. So if you’re living longer, you’re going to need the funds to do so.
2. Women Need To Compensate For All The Unpaid Work They Do
Women are more likely to take career breaks to either have children, care for children or care for others in the family, such as elderly relatives. In fact, over the 18-month period from April 2017 to November 2018, 34 per cent of women were economically inactive due to providing care for the family/home, compared to just 6.9 per cent of men. This means that women have gaps in their earning life where they are not making any or making small pension contributions.
3. More Women Work Part Time Than Men
More than a third (42 per cent) of women in employment work part-time compared to just 13 per cent of men. This often enables them to work around other responsibilities, but means they have less pension contributions.
4. The Gender Pay Gap
The gender pay gap means that women earn less over a lifetime than men. The gap is currently at 8.6 per cent among full-time employees. This means, again, that women are going to be making lower pension contributions and likely have less to save or invest.
5. Women Are More Successful At Investing Than Men
Research shows that women assume less risk and have a higher success rate than men. They not only save 0.4% more than men, but their investments earn 0.4 per cent more annually too.
6. Women Are Already Making Most Of The Financial Decisions
When it comes to making financial decisions within a household, women are taking an increasing role. They’re more likely to think about day to day priorities and be responsible for things like food shopping and household items.
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