PROVIDENCE – In the battle of the sexes, women are winning the investing front.
A new study published Oct. 8 by Fidelity Investments Inc. found that more women are investing outside of retirement than in the past, and getting better returns than their male counterparts.
Beyond Cash Donations: How New Forms of Giving Are Transforming Not-for-Profit Accounting
Evolving Funding Landscape for Not-for-Profits Not-for-profit organizations are being asked to do more with less,…
Learn More
Women saw an average return on investment that was 40 basis points higher than men, based on analysis of 5 million Fidelity customers over the last 10 years published in Fidelity’s “2021 Women and Investing Study.”
At the same time, an increasing number of women are investing beyond traditional retirement accounts and emergency funds – two-thirds of those surveyed as of the latest study. This represents a 50% increase over the number of women making investments when Fidelity last conducted the study in 2018.
Fidelity called the pandemic a “powerful catalyst” for women to make finances a priority, including in making the move from saver to investor.
The company also reported a 43% year-over-year increase in the number of new retail investing accounts opened by women, with a 37% increase in women taking advantage of financial and investment guidance from Fidelity.
Women are also contributing a record high 9.2% to their workplace savings accounts, according to the study.
However, many may still be holding on to money in the bank rather than investing it. Nearly half of women surveyed reported having $20,000 or more in traditional savings accounts, with 18% holding on to $100,000 or more.
Among the barriers to investing is lack of investment knowledge, which only 4 in 10 reported feeling comfortable with knowing how and where to invest their money. Two-thirds of those surveyed say they would start or increase their investments with more knowledge and guidance.
The study reflects results from a survey of 2,400 adults with at least $50,000 in income who are actively contributing to a workplace retirement savings plan.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
