Not investing deepens the disadvantage
Financially and otherwise, the deck tends to be stacked against women. The wage gap, which stood at 20% in 2017, is the most blatant example of that. If current trends continue, that gap is unlikely to close in the U.S. for another 40 years, according to an analysis by the Institute for Women’s Policy Research.
While they wait, women might aim to close a gap over which they have more direct control: the investing gap. When compared with men, women are much less likely to invest their savings — and we miss out on significant wealth as a result. In a recent survey from Fidelity Investments, only 29% of women said they see themselves as investors. That needs to change.
Due to the wage gap, even if women save a greater percentage of our income than men — and research repeatedly shows we do — we accumulate less money. We’re also more likely to spend time out of work, caring for children and other family members. As a result, a study from the National Institute on Retirement Security found that women are 80% more likely to be impoverished in retirement.
Any advice to save more falls flat; many women are undoubtedly saving as much as they can. But if you’re not also investing that savings in the stock market, you’re only widening the gap.
www.forbes.com
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