Four Four Four

Four reasons: Why more women need to start investing

Thought Starters 4 minutes to read

Saxo Group

Summary:  Twice as many women entered the stock market during the corona pandemic in 2021 compared to 2020. This suggests a movement picking up momentum towards financial equality.


With the share of female clients doubling over the course of just one year, progress is clear: things are moving in the right direction towards closing the financial gender gap. However, we are still far from reaching this goal.  

So what’s keeping women from investing?  

According to several studies, most women are not aware of their existing (or potential) investment ability. Unfortunately, this is often caused by insecurity, old norms and the bad reputation of the financial industry.  

Women are, on average, saving 9% of their total annual salary, whereas men only have an average saving of 8.6%. But the gender pay gap means that women in reality have smaller savings than men, even though the percentages indicate the opposite.  

Measured in assets and investments, women are financially lagging behind men in 195 out of 195 countries in the world. Yes, it’s true: not a single country has financial equality between genders.  

Let’s challenge the present investment culture and close the gender financial gap with a win-win solution. We need women to start investing – because they are good at it!  

Here are four reasons why women should get started investing in themselves and their own future: 

Reason no. 1: Women create better profit 

Studies proves that women have an average investment profit 0.4% higher than men. It may not seem like much, but over a longer period it’s obvious, that women outperform men. And why is that? Simply read reason number two and three. 

Reason no. 2: Women know their risk  

Women live longer than men on average. That is, among other things, caused by their ability to rate risk. Same goes for investing. Women are more aware of the risks that typically come with investing. On top of that, they do more thorough research of their potential investments before pushing the “buy” button. Because of these factors, women are more likely to achieve stable and long-term profits compared to men.
  

Reason no. 3: The power of patience 

Rule number one in the investment world is that “time in the market beats timing the market”. Most women make use of the “buy and hold”-method, which is essential if you want to generate long-term returns. Historically, the global stock market has increased 7-10% a year. This implies that patience is key in the investment world, which makes women good investors.
  

Reason no. 4: Women live longer

On average, women live four years longer than men, meaning they have more time to earn money. Despite that, there is an 80% risk for a retired woman to live in poverty, compared to a retired man. That is mainly caused by the gender pay gap. In Europe men on average earn 14,1% more than women. Worldwide, the number is 32% on average. Overall, women have less money than men but live longer. That is why it’s important for women to start investing, for their own good and for the sake of their future. As mentioned in reason number three time is an important factor in order to grow your assets – so why wait? 

Female investors should keep going because they are on the right track. It is estimated that it will take 257 years before the gender financial gap is closed. That is 257 years too many. Start investing – in yourself and your future, while fighting financial inequality.  
Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.