Women who work full time earn an average of 81.6 cents to every dollar that full-time, working men earn.4 This discrepancy can cost American women between $700,000 to $2 million over a working lifetime.4
Many women take more time off work than their male counterparts to raise children or care for elderly parents. Not only does this mean you may lose a regular paycheck; it also means you could have less disposable income to invest in the long term, and may translate into lower Social Security benefits during retirement.
Women often experience significant financial impacts from divorce or the death of a spouse – a woman’s household income can drop by 18% post-divorce and 15% after the death of a spouse. 5
Across key aspects of financial decision-making, investing is the area where women may feel least confident, compared to making decisions about savings, property and pensions, or household finances.
Women outlive men by five years, on average,6 with half of women living until at least age 90.7
While men approach investing from a performance basis, women are far more interested in the end benefits. There’s a greater focus on being financially secure and able to afford certain lifestyles for themselves and their loved ones over the long term.
Women typically take more time to evaluate whether the reward justifies the risk when they invest, and tend to pause to assess potential drawbacks before diving in.
Women value responsible investing and investments aligned with their personal values. As a group, they’re twice as likely as men to say it’s extremely important that the companies in which they invest incorporate environmental, social and governance (ESG) factors into their policies and procedures. 8