The number of women saving for their retirement has increased over the years as more women are now financially aware than before. The number of women investors in 2023 increased by 42 per cent, according to a survey by FinEdge in August 2023. Retirement Planning Gains Traction Among Women, 30.82% prioritize it over other goals.

The study included responses from 3,763 women clients of the company within the age group of 23 years to 76 years. Findings revealed that not only has there been an increase in the number of women investors, even the investment amount has also increased.

On average, women are saving 5 per cent more than men for their future goals, the study said. As against an average monthly saving of Rs 13,704 by men, women save an average of Rs 14,347 every month, the survey said.

Harsh Gahlaut, CEO, FinEdge said “We are delighted to see more and more women leading the way and helming their family’s financial plan. Temperamentally, women make better investors than men as they are less speculative and more purpose-driven. This makes them excellent long-term investors as their resilience allows them to benefit from compounding. We are certain that this trend will gather momentum in the next 3-5 years.”

Retirement

Most women are saving for their retirement, according to the survey. A huge 30.82 per cent of women have retirement planning as one of their priorities.

“Their consistent and goal-based investments in the systematic investment plans (SIP) show the commitment towards their long-term goal with a 19 per cent lower stoppage rate,” the survey said.

According to the survey, as more women enter the workforce, they are independently planning for their finances, which includes retirement too. It is second to child education planning.

Women also take measured risks with some guidance to benefit from compounding, the study said. Notably, 87 per cent of the women surveyed chose equity-oriented SIPs, compared to 89.9 per cent in men, showing only a slightly higher risk aversion. The average age of women investors was found to be 38.67 years, approximately two years less than the men investors at 40.34 years.

Region Specific

The survey was conducted across East, West, North, and South zones. The West and the North zones showed a higher percentage of women investors at 34.54 per cent and 32.98 per cent, respectively as compared to the others. 

Challenges

The survey also highlighted the challenges women typically faced in their career, which also affected their finances and wealth journey. Some of these include career breaks due to family, limited awareness of investment concepts, excessive risk aversion, distrust in sales advisors, and confidence gaps because of the traditional gender roles.

The study further said that the investment needs of women were different from those of men.

In the feedback sourced from the women surveyed, the qualitative insights on what they wanted from the investment platform, revealed five preferences, namely trustworthiness, non-sales centric approach, easy to understand and user-friendly platform, handholding to some extent where somebody explains the nuances of investment to them, empathy, and customisation.

Gahlaut said: “An investment management business that specialises in women clients’ needs to take all the above into account. Traditional sales centric outfits (like bank RM’s) as well as cold DIY platforms (robo advisory) that lack the human element fail to meet their unique requirements. A bionic model that combines the best of tech and people is the key to success in this segment”.

FinEdge conducted the survey to commemorate Women’s Equality Day, the day when women were granted the right to vote in the US through an amendment in the US Constitution. The day is celebrated every year on August 26.