Today we released a new survey on affluent women between the ages of 40-69 that reveals their perception of wealth, investing and retirement. What was most encouraging was that affluent women incomes are trending higher with 44% saying they earn “about the same” or “more” than their spouse. Respondents have a median of $145,000 in household income and $455,000 in investable assets.
We find that affluent women are financially savvy working women, but investing confidence doesn’t necessarily follow with increased wealth. A majority of affluent women (91%) say it’s important that women be confident in their ability to invest, yet only 8% describe themselves as “highly confident.” Forty-nine percent of women say they are “somewhat confident” in investing, and 41% say they are “not at all confident.”
Women have made so much progress on the journeys to reach parity in their work lives, but it seems that there is less movement on investing confidence. Through our research, investing confidence seems to be the lynchpin to so many other positive behaviors which provides an opportunity for women to grow their savings and build a solid foundation in retirement.
The confidence correlation
We examined the behaviors of the ‘highly’ or ‘somewhat’ confident women to see there were big differences between not confident women. Here’s what we found:
- Two-thirds (67%) of confident women say they were taught about investing by someone vs. only 39% of the not confident.
- Almost half (47%) of confident women are interested in learning more about how to invest vs. 35% of the not confident.
- A greater percentage of confident women (59%) say the stock market is the best place to grow savings over time, while 39% of those who are not confident investors agree with this.
- Seventy-three percent of confident women say either they alone or in conjunction with their spouse make the household investment decisions versus 49% of those who were not confident.
An underlying theme in these confident women is a focus on financial literacy. Many were taught about investing by someone, have an interest in learning more, make investment decisions with their spouse and feel the stock market is the best place to grow savings over time. All of that confidence stems from having a greater knowledge to make informed decisions.
Do you feel confident in your own investing ability? Did someone teach you about investing? Would you like to learn more about investing? What do you think will help you gain more confidence in your investing ability?