Personal Finance | Why women invest less and make better returns

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The gender pay gap and shorter work life may be the reasons, but women make better returns.

South Africa has significantly higher levels of female unemployment and around 50% of mothers are raising their children alone, with only around 20% receiving regular support from the father.A male friend of mine who works in the financial industry is very disparaging about the focus on women and money. He argues that money is gender neutral and speaking specifically to women is patronising. Strangely, I have never had that comment from a woman.

We have significantly higher levels of female unemployment and around 50% of mothers are raising their children alone, with only around 20% receiving regular support from the father.We are all told women need to save more for retirement, but the real issue is that women simply have less money than men for investing in their future.

If a woman only starts saving for retirement at age 40, she then needs to save 40% of her salary to meet a basic retirement income. And when women do invest, they outperform men – a study of 5 million Fidelity customers over a ten-year period found women investors achieved higher returns than men.

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