CRITICAL INSIGHTS TO EMPOWER WOMEN TO TAKE THE REINS OF THEIR FINANCIAL DESTINIES

A recent study has spotlighted women and investing, offering critical insights that aim to empower women to take the reins of their financial destinies and forge paths toward a prosperous future. Notably, an impressive majority of women (68%) engage in investment activities at least once a month, with over two-fifths (42%) diligently monitoring their savings and investments via online platforms or apps at least once weekly [1].

This proactive stance leads to nearly one in five (19%) women having a precise understanding of the value of their investments at any given time. However, the distribution of investment vehicles among women reveals a tendency towards traditional savings accounts (61%) and Cash ISAs (35%), with a notably smaller segment (17%) opting for Stocks & Shares ISAs, in stark contrast to 30% of men.

PREFERENCES AND BARRIERS IN WOMEN’S INVESTMENT CHOICES

When it comes to selecting a savings or investment product, an equal number of women (37%) value ‘easy access to funds’ and the protection offered by the Financial Services Compensation Scheme (FSCS) above other factors. Additionally, ‘low or reasonable fees’ are paramount for nearly one in four (23%), while digital accessibility is deemed essential by almost one in five (19%).

Alarmingly, a substantial proportion of women (37%) report not investing at all, a figure that exceeds that of men (24%). The reasons cited for this abstention are diverse, with the most common being a lack of disposable income for investment purposes (45%), followed by concerns over high risk (18%), complexity (10%) and liquidity (9%). These findings underscore an urgent need for bespoke financial education and empowerment initiatives for women.

WOMEN TAKE A BALANCED APPROACH TO INVESTMENT

The study further reveals a commendable balanced approach to investment risk among women, with a significant majority (85%) describing their investment strategy as either medium (35%) or low (50%) risk. This cautious yet strategic approach is laudable, especially in light of evidence suggesting that female investors often outperform their male counterparts over the long term, thanks to a patient and disciplined investment style.

In an age where financial independence is a coveted goal for many, it becomes crucial to address and surmount the unique obstacles that women may encounter in the investment landscape.

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Source date:

[1] Research conducted by Censuswide between 10^th – 12^th – January 2024 of 2003 general consumers, aged 16 , national representative sample. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles.

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THE VALUE OF YOUR INVESTMENTS CAN GO DOWN AS WELL AS UP, AND YOU MAY GET BACK LESS THAN YOU INVESTED.

THE TAX TREATMENT IS DEPENDENT ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN FUTURE.