Women are increasingly ‘wary’ of investments, finds a new piece of research from consumer finance group Boring Money. Women are increasingly ‘wary’ of investments, finds a new piece of research from consumer finance group Boring Money.
This caution leads to a huge gap between the number of women who hold investments and the number of men. Just 21% of women invest, compared to 34% of men. The gender investment gap starts early, with 45% of women under 25 having no savings or investments compared to 40% of men of the same age.
Why so cautious? Confidence is a factor, time is another, but there is also a lingering problem that the financial services industry just seems alien. The same research found that women are much more likely to trust lifestyle brands that have moved into financial services – John Lewis, Tesco and so on – rather than established financial brands.
Women tend to likely to stick to cash because investments are ‘too risky’ (22% of women savers vs 17% of men savers). When choosing a financial provider, women said they are more likely to seek recommendations from friends and family than men, who are more inclined to do their own research. Again, women’s disengagement from financial services is evident.
Does it matter, after all
Holly Mackay, CEO at Boring Money, said, “Our failure to engage women as long-term investors simply exacerbates a key problem we face – women are typically paid less, earn less and are also less likely to engage with the investment products which could deliver better returns for long-term savings. We need to tell people that investing can be for them, regardless of their gender, age or net monthly wage, or attempts to deliver equality in later life will fall short. This is a bigger issue than simply looking at the pay gap.”
ry just seems alien. The same research found that women are much more likely to trust lifestyle brands that have moved into financial services – John Lewis, Tesco and so on – rather than established financial brands. Women tend to likely to stick to cash because investments are 'too risky' (22% of women savers vs 17% of men savers). When choosing a financial provider, women said they are more likely to seek recommendations from friends and family than men, who are more inclined to do their own research. Again, women's disengagement from financial services is evident. Does it matter, after all Holly Mackay, CEO at Boring Money, said, Our failure to engage women as long-term investors simply exacerbates a key problem we face – women are typically paid less, earn less and are also less likely to engage with the investment products which could deliver better returns for long-term savings. We need to tell people that investing can be for them, regardless of their gender, age or net monthly wage, or attempts to deliver equality in later life will fall short. This is a bigger issue than simply looking at the pay gap.
