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Could the gender savings gap be closing?

05/07/2022

For years, there has been a well-known gender gap when it comes to saving money. This includes not only savings and investments, but also pensions: recent research reveals that the gender pensions saving gap is now the highest it’s ever been. 

But could that all be changing when it comes to investing? 

 

Women are investing younger

New research from asset management firm Janus Henderson suggests that when it comes to investing, women are starting younger than men. Their data shows the average age of a first-time investor to be 32 for women, 35 for men. 

This, they say, “gives hope that the industry is making some headway in helping close the gender savings gap”. 

It is possible that more women and men alike could have started investing earlier. However, the Janus Henderson survey shows that a lack of “spare” money prevented them from doing so. 

 

Too young…?

The Janus Henderson research also shows that 27% of respondents chose not to invest earlier in their lives because they felt that they were too young. 

In the US, meanwhile, research from Fidelity shows that 36% of women aged 36 and over regret not starting to save for retirement earlier. 

With the cost of living so high, it is understandable that many younger women may not feel that they are in the right place to invest. However, the research also suggests that more education around the subject may be needed. 

 

Banishing the myth

We’ve written before about some of the common myths about investing – and from the Fidelity and Janus Henderson data, it seems that the first myth we covered – “you have to be rich to invest” – still needs debunking. 

As James de Sausmarez of Janus Henderson says, it doesn’t matter how big or small an amount you begin with. “Starting that process as early as possible”, he says, “regardless of how much or how little money it involves, is the first step towards achieving that goal of ensuring a comfortable retirement.”

“Stable Rise Limited is not authorised or registered by the Financial Conduct Authority. The marketing materials are not intended to provide financial advice nor promote any individual financial products.”

 

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