Women are playing a bigger role in retail financial markets than ever before. In the United States, the amount of assets controlled by women increased their share under management from 31% to 34% from 2018 to 2023. Factors such as women living longer than men, more working women investing through retirement accounts, and greater access to investing education are helping create a more female-driven financial landscape than ever before.1
With more women participating in today’s retail markets, the landscape is changing. Women tend to prefer lower risk and are more likely to invest in stable, long-term companies, while men are more likely to invest more aggressively. This approach has paid off for women. A Fidelity study over a 10-year period found that women’s investments earned, on average, 40 basis points more than those of their male counterparts. While these gains seem small, they can compound significantly over time.2
There are several steps women can take to increase their financial impact: investing in retirement accounts, investing before they feel confident, and seeking guidance.
First, women tend to contribute less to retirement accounts. About 28% of women do not contribute to a retirement plan at all, compared to 18% of men. Because many employers offer matching contributions, women who do not participate are missing out on free money that could substantially increase their retirement savings.
Another factor is confidence. Many women report feeling less financially knowledgeable than men, which can lead them to delay investing altogether. Instead of waiting to make the perfect investment at the perfect time, data shows that starting earlier is key to retirement success.
Finally, seeking financial guidance can make a meaningful difference. Both women and men who work with a financial professional typically retire with more assets than those who manage their investments on their own.3
As women take greater control of their finances, they are not just growing their wealth, they are reshaping the financial landscape for generations to come. If you have questions regarding how to take greater control of your finances, please let us know.
1 https://www.mckinsey.com/industries/financial-services/our-insights/the-new-face-of-wealth-the-rise-of-the-female-investor
2 https://www.fidelity.ca/en/insights/articles/womenandinvesting/
3 https://www.bankrate.com/retirement/a-quarter-of-women-are-not-retirement-planning/#less-confident-about-retirement-planning
