The idea of a confidence gap among women has gained notice in recent years. And in the world of finance, the effects of this gap can be especially apparent. Although more women are providing for their families, when it comes to preparing for retirement, they may be leaving their future to chance. Here are some interesting statistics:
- Nearly 60% of women take sole responsibility for making investment decisions, yet only 19% of women feel very confident in their ability to fully retire with a comfortable lifestyle.1,2
- Even though women have no more reason to lack confidence than men do, only 33% of women feel confident in their ability to make investment decisions.
- In addition, one survey found that women invest 29% less than men.
Women & College
The reason behind this disparity doesn't seem to be a lack of education or independence. Today, women are more likely to go to college than men. So what keeps them from taking charge of their long-term financial picture?3
One reason may be a lack of confidence. One study found that only 48% of women feel confident about their finances. Women may shy away from discussing money because they don’t want to appear uneducated or naive and hesitate to ask questions as a result.4
Insider Language
Since Wall Street traditionally has been a male-dominated field, women whose expertise lies in other areas may feel uneasy amidst complex calculations and long-term financial projections. Just the jargon of personal finance can be intimidating: 401(k), 403(b), fixed, variable. To someone inexperienced in the field of personal finance, it may seem like an entirely different language.5
But women need to keep one eye looking toward retirement since they may live longer and could potentially face higher healthcare expenses than men.
If you have left your long-term financial strategy to chance, now is the time to pick up the reins and retake control. Consider talking with a financial professional about your goals and ambitions for retirement. Don’t be afraid to ask for clarification if the conversation turns to something unfamiliar. No one was born knowing the ins and outs of compound interest, but it’s important to understand in order to make informed decisions.
Compound Interest: What’s the Hype?
Compound interest may be one of the greatest secrets of smart investing. And time is the key to making the most of it. The idea is simple - the earlier you start investing, the more your accounts have the opportunity to grow. This is because you earn interest on your initial savings, but you also earn interest on the interest itself. In other words, every year that money is in your account you are earning interest on the interest from each previous year.
Here's the Truth
Women have fantastic financial instincts. Studies show that female investors thrive and often outperform their male counterparts. Women have proven they have the patience, discipline, and long-term commitment it takes to persist through the ups and downs of the markets. By 2020, women in the US are expected to control $30 trillion dollars in financial assets. That's a lot to feel confident about. The power to drive more money into the market while shaping a better future for themselves and their loved ones. We want to make sure everyone feels equipped to climb their personal mountain. You can be sure we'll be here to support you every step of the way.
Meet Kelly
1. AssociatedBank.com, May 18, 2023
2. TransAmericaCenter.org, 2023
3. Statista.com, 2023
4. Bankrate.com, April 10, 2023
5. Distributions from 401(k), 403(b), and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 73, you must begin taking required minimum distributions.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2025 FMG Suite.