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

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research 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. To the extent that any content is construed as investment research, you must note and accept that the 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 under relevant laws.

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

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Support Centre
For existing clients, please click here to request support via the Support Centre.

Have a question about our products, platforms or services? Visit the Support Centre to find answers for our most frequently asked questions. If you are still unable to locate an answer to your question, you will also find contact details for your local Saxo office to speak with a representative.

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.