In this International Women’s Day special episode our Singapore-based Research Analyst Jen-Ai Chua and Head of Investment Promotion & Solutions Asia Pearlyn Wong focus on the rising need for women to structure their wealth. Today, women hold an average of 40% of global wealth. Nevertheless, they are underrepresented in the world of investing. Our experts discuss the reasons why this may be, why women make better investors and how financial education is the key to a higher participation rate.
Listen to the podcast
Click on the player below to hear Jen-Ai and Pearlyn’s conversation:
Women’s wealth across the globe is growing significantly and now approaching a tipping point
Why should this matter for women? We make the case for more active participation by women in managing their wealth, given the following unique considerations:
- A longer life expectancy: Women live longer, and hence need to plan for a longer retirement.
- Less earning power compared to men: The gender gap in wages also translates into wealth and retirement gaps that need to be actively managed.
- Tendency to make fewer large financial decisions in a household: This results in women potentially being less prepared for retirement or feeling pressured over their personal finances.
- Are not inferior investors: Studies suggest that despite their tendency to underestimate their financial knowledge, women as a group tend to outperform men.
Investment implications for female investors
- Review cash positions: More risk tolerant women could consider selectively increasing exposure to risky assets in their portfolio in anticipation of higher returns for longerterm needs.
- Start investing now: There is no better time to start investing than now. Invest early and often, for longer periods to take advantage of the magic of compounding.
Beyond Markets by Julius Baer is a series featuring conversations with experts to share recent market developments, key insights, and strategic inputs from around the globe. In each episode, we cut through the noise to bring practical advice and macro research on today’s shifting economic and market landscape.