US News & World Report: “Women and Investing: Statistics Show Progress, Not Parity”

US News & World Report: “Women and Investing: Statistics Show Progress, Not Parity”

Women’s Equality Day is Aug. 26. Here’s what top studies have to say about gender equity in investing.

August 19, 2024 — According to a 2021 survey by Fidelity Investments, 67% of women were investing outside of their retirement accounts, which is up from 44% in 2018. The participation rate of women in the financial markets has been on a steady increase in recent years. Increased interest in women’s investing trends has resulted in many surveys by different organizations. Here, U.S. News highlights the most recent and relevant of these surveys, pointing out major statistics and trends regarding women’s investing participation and behavior in the U.S. The results show how much progress has been made toward closing the gap between men’s and women’s investing participation and how much work remains to be done.

Here are some commonly asked questions and the answers in statistical form:

A 2021 survey by Fidelity Investments found that 67% of women were investing outside of their retirement accounts, up from 44% in 2018. Also, the number of women interested in investing increased by 50% since the start of the COVID-19 pandemic. So, although the gender gap in investing still exists, some progress has been and is being made toward equality in this area. Other statistics:

  • McKinsey & Co. found that the number of married women making financial and investing decisions increased by 30% between 2015 and 2020.
  • In 2021, 68% of women had started to talk about finances in their homes, according to a survey by UBS, a global financial services firm.
  • In 2023, 60% of women invested in the stock market, according to a survey by Fidelity Investments.

While the exact percentage of women investing their money will vary from one survey to another, there is a consistent trend: There are differences across ages, income levels and education status. For example, the 2023 Fidelity survey reported that 60% of women were invested in the financial market; however, the participation rate differed across generations. Generation Z invested at a 71% rate, millennials at 63%, Generation X at 55% and baby boomers at 57%. Similar dynamics were reported in 2021. While 67% of women overall invested outside of retirement accounts, 71% of millennials, 67% of Gen X and 62% of baby boomers did so. A 2022 survey by Bank of America shows differences based on age and affluence. Among affluent households, women younger than 60 (45%) were more confident about making investment decisions on their own compared with those 60 and older (40%). On the other hand, among less affluent households, women older than 60 (39%) were more confident making investment decisions on their own than those younger than 60 (25%). Read more