Today, Wealthify released research that uncovered an interesting point. Nearly nine out of ten women (87%) avoid investing, opting instead to put their money in a savings account. This contrasts significantly with the 58% of men that shared the same sentiment. Not only were women less likely to invest, but 74% of them reported feeling anxious and uneasy when considering it as an option.
It’s not just this research that has identified a stark contrast between men and women when it comes to investing. Several other studies by well-known institutions have found that men are significantly more likely to undertake investments and make decisions surrounding them. For example, data from NatWest Markets shows that almost twice as many men than women have invested in the stock market this year.
Experts are predicting that this trend is likely to start to decline in 2021, although there are several steps being implemented to address this gender imbalance. For one, a growing number of organisations providing educational information, content and support to help investors understand complex markets and be more comfortable with making decisions. This is especially important for women, who often lack the necessary knowledge and guidance to make informed decisions.
The demand for investment-related advice and guidance is increasing, and it is currently being met with numerous options. Wealthify, the online investment service that produced the research, provides its customers with expert investment advice and guidance. Customers can use the service to access straightforward, accessible and affordable advice that allows them to invest with confidence.
These initiatives have the potential to make a real impact in terms of gender balance. Since the research shows that fears about loss of money are the primary barrier for majority of women not taking the steps towards investing, having access to the appropriate education, guidance and support can make a significant difference.
Ultimately, it is important for both men and women to have access to the knowledge and information they need to make decisions surrounding investments with comfort. Hopefully, this research and the related initiatives will be successful in levelling the playing field, and more women will feel equipped and eager to take part in the investing world.