Gen X and Boomer Women Are Investing More Than Ever: 2 Ways This Builds Their Wealth
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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More women of all ages are investing in the stock market than ever before. According to Fidelity Investments’ 2024 Women & Investing study, 71% of women invest in the stock market, up from 60% in 2023. And while younger generations continue to invest in higher numbers, the percentage of Gen X and boomer women who invest in the stock market increased the most year-over-year, rising 18% and 23%, respectively. Currently, 65% of Gen X women and 70% of boomer women invest in the stock market.
In this “Financially Savvy Female” column, we’re chatting with Lorna Kapusta, head of women and engagement at Fidelity, about why more women in these generations are investing, the advantages of investing in the stock market for these age groups, and tips for Gen X and boomer women who are new to investing.
What are some possible reasons that older generations of women have started to invest in the stock market in higher numbers?
It’s great to see more Gen X and boomer women investing and making the most of their money. There are a lot of reasons that can explain this increase.
First, many older women are coming into their peak earning years, which typically happens for women beginning in their mid-40s. They’ve reaped the benefits of increasing incomes and now have money to invest.
Second, women have more access to financial education and resources that have helped them learn about making the most of their money, including why it’s important for them to invest, how they can get started and the unique factors that make finances different for women.
Women tend to live longer than men, which means they’ll need more funds to sustain their retirement. They also have higher healthcare costs throughout their life, including in retirement. Women are realizing what they’ll need in retirement and are using investing as a tool to help them feel more confident when they get to retirement.
Older women could also be going through changing household dynamics, such as divorce, a partner becoming ill or death of a spouse, which could lead to them becoming the sole financial decision-makers. We found that most boomer women indicate they are the sole decision-maker for both the day-to-day financial decisions (54%) and the long-term investment decisions (52%) in their households.
How can investing in the stock market help Gen X and boomer women build their wealth?
It’s usually a good idea to diversify your investments and one way to do that is to invest in the stock market. Historically, stock market investments have typically offered higher growth potential than keeping money in cash.
What advice would you give to Gen X and boomer women who are new to investing in the market?
First, I’d say great job getting started! Our study found more than 7 in 10 women wish they started investing their extra savings earlier on, but I want to urge that it’s never too late to get started.
As a first step, I’d recommend clearly outlining what you’re investing for. Are you investing for short-term goals like a vacation, or a long-term goal like retirement or purchasing a home? By answering this question, you’ll be able to make smarter decisions about your investments.
Then, make a game plan. Figure out your time horizon, how long you plan to stay invested and your risk tolerance — how much risk you’re willing to take. This will help you decide which investments are best for you and your goals. Once you choose your investments, keep monitoring and checking in on your investment plan.
I would also recommend thinking about working with a financial professional. Investing is a great first step, but it may be a good time to develop or adjust your financial plan. In addition, if you haven’t already, it may be time to develop an estate plan, assess different insurance options and begin to plan for life in retirement.
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