Planning for a brighter future
The Covid-19 pandemic has had a significant impact on savings and investments. To find out the extent of the impact on women’s finances in particular, we asked 4,000 women across 10 European countries to tell us about their current savings situation.
The results are revealing. Women in general continue to favour cash accounts for their savings, which could be detrimental for their future financial security given today’s very low interest rates. At J.P. Morgan Asset Management, we are committed to providing the tools and information needed to help more women build a financial plan, start investing and eventually take control of their long-term finances.
Women are much more likely to be savers than investors
While less than one in five women invest regularly compared to nearly four in five who save regularly in cash, non-investors are much less likely than investors to have increased their savings over the last year. Convincing more non-investors to consider investing regularly could therefore improve their financial security.
Women who invest and have a financial plan are more confident and more secure
Planning is a key part of investing. Nearly four in five women who invest have a financial plan with clear objectives compared to less than half (49%) of non-investors. This planning results in greater financial security, with women investors also tending to be more confident about their financial future than those who save in cash.
Many women lack financial confidence
A feeling, even among investors, that investments are complicated is holding many women back from making an investment. Two thirds of non-investors, and nearly a half of investors, believe that investing is complicated. A lack of financial confidence is also a hurdle to investing, with less than half of women who don’t invest saying that they feel confident when it comes to managing their long-term finances.
Sustainable investing is attractive for many women
A large proportion of respondents, both investors and non-investors, are motivated by the possibilities of sustainable investing, with nearly three in four women surveyed saying that sustainable investing is important, and over three quarters confident that sustainable investing can produce positive change.
Accessibility is key to boost financial planning for women
Women like the flexibility and accessibility of cash savings. Perceptions of volatility, complexity and a lack of control are hurdles to investing. The survey suggests that more women could decide to invest if they had better access to financial planning and clearer communications, and if investing was made easier and more affordable.
