Why women need to be more proactive about investing money

by | May 5, 2022 | Women & Finances

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When it comes to finances, women are often stuck on the back foot. Some would even go so far as to say the system’s rigged against us.  

When you take into consideration the gender pay gap, the recently revealed KiwiSaver gender gap, and the fact that women live longer… it’s no wonder we prefer a glass of pinot over putting a punt into the stock market.

Here’s what we’re up against.

The gender pay gap

In 2021 the national gender pay gap for New Zealand was 9.1% while the gender wage gap was 4.6%. The difference between these figures comes down to the fact that 1 in 3 Kiwi women work part-time and when this data is included in pay gap measures, it’s easier to see the impact of the ‘motherhood penalty’.  

On top of this, women are less likely to get a raise or negotiate as strongly as their male colleagues. Which links into…

The KiwiSaver Gap

In April of this year, the first KiwiSaver gender data report revealed that women have 20% less in retirement savings than men. Yet, more women are enrolled in a KiwiSaver scheme (51.3%).

Te Ara Ahunga Ora Retirement Commission (who gathered the data) puts this down to the combined impacts of the gender pay gap, women’s time out of paid work to raise their family, and the larger proportion of women in part-time work.

Meanwhile, we live longer

The one area where women are outperforming men? Life expectancy. According to Stats NZ life expectancy is 80 years for men, and 83.5 years for women.

High fives all around! 🥳

…until you consider the impact that having less money will have on those extra years.

All of this means that in general, women are going to be worse off when it comes to retirement. We’ll have less money, and we’ll need to make that money last longer.

Which is why it’s crucial that we’re proactive about investing. And research has shown that when we do, we’re really good at it!  

A recent study by Fidelity shows that on average women outperformed their male counterparts by 0.4%. While this may not seem like a lot, it can certainly add up over the years.

This is because women research their investments more thoroughly and avoid higher-risk opportunities. And unlike men, women don’t let their ego get the better of them when it comes to investing their hard-earned money.

Still not convinced that you’re up to it, are wondering just where to start, or want to get into the nitty-gritty of investing? Check out our Women & Finances webinar about investing with confidence over on our Past Webinars page

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