Female Investors are ‘Future-Proofing’ Their Finances — 4 out of 5 Say They’ll Reach Desired Retirement Income

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One of the most striking phenomena of the pandemic has been the rise of retail investors, who became savvier and more self-educated amid economic uncertainties and market volatility, thanks in part to new apps. Now, a new survey finds that a majority of female investors – four out of five – are confident they’ll reach their desired income in retirement if they continue with their current investment strategy.

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The eToro survey, “How female investors are “future-proofing” their finances in 2022,” also found that nearly 1 in 5 women plan to reach this retirement goal within the next five years. In addition, the survey found that 72% of female investors say they invest at least monthly, 16% say they invest a third or more of their monthly income, and 53% say the pandemic has had an impact on their investment habits.

“Female investors are using investing as a powerful lever to secure their futures, boost income, and/or to build net wealth,” eToro’s Global COO and Deputy CEO, Dr. Hedva Ber, said in the survey. “It is clear from the research that female investors are carving out their own future, and building for the long-term, something which is to be celebrated.”

Building Wealth

The top reasons why women invest are to outperform savings, supplement income, improve lifestyle, generate a one-off payment and attain financial independence, according to the survey.

Many of these women began investing to generate extra income and to counter low interest rates. The survey data shows 22% began investing three to five years ago, 11% started six to 10 years ago, and 47% started two years ago or less.

A fifth of female investors cite “long-term security” as the main reason they began this journey, while for 21% of them, achieving financial independence to retire early is their priority. In addition, 76% of female investors regard investing as part of their household financial management.

Related: 5 Easy Financial Habits Every Woman Should Pick Up

The consequences of the pandemic continue to linger, however, with 53% of female investors saying it’s had an impact on their investment habits, and 30% say they feel more pressure to improve their financial situation.

As for where they invest, the most popular investments for women are domestic stocks at 41%, followed by cryptos at 36%. The other investments they favor include domestic bonds at 25%, foreign stocks at 23%, alternative investments at 23%, cash at 21%, commodities at 14%, foreign bonds at 13%, and currencies at 11%, the survey notes.

Building Wealth

It’s interesting to note that crypto was the top answer for which assets female investors are planning to invest in for the future, at 35%.

Another finding of the survey is that female investors believe the best investment opportunities over the next three months will come from green energy and renewables followed by “MAMAA” stocks: Meta, Apple, Microsoft, Amazon and Alphabet.

Finally, the survey notes that women tend to lean heavily on personal recommendations for information on how and when to invest, with 47% of female investors turning to friends, family or colleagues for insight. More than half the female investors cited the need for more female role models, as well.

“Women clearly want to improve their finances, and crave more education around investing. We need to respond to the calls for more female role models and ensure they represent the diversity of women who could benefit from knowing more about investing. Financial education is key and while progress is being made there is more work to do. We have a responsibility to make a positive difference to women’s lives now and in the future.”

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“Women clearly want to improve their finances, and crave more education around investing,” eToro’s Ber said in the survey. “We need to respond to the calls for more female role models and ensure they represent the diversity of women who could benefit from knowing more about investing. Financial education is key and while progress is being made there is more work to do. We have a responsibility to make a positive difference to women’s lives now and in the future.”

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.

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