Fewer women in Singapore are actively making decisions about where to save or invest their money. According to a recent Singaporean study on personal finance conducted by investment manager Fidelity International, only 59% of women here actively invest, compared to 72% of men.
While Singapore men hold an average of $93,201 in investments, women here have invested an average sum of only $76,467. The same is true for personal savings: On average, women hold $69,597 in savings while men hold an average of $82,061.
The Global Women and Money 2022 survey aims to understand the experiences and views of women towards investing and money management.
The latest edition also found that women in Singapore (47%) are much less confident than men (61%) when it comes to making decisions over savings and investments.
But women also have greater expectations for financial independence: They expect themselves to become independent at 42, while men give themselves half a decade more, at 47 years old.
“It is good to see that women in Singapore already demonstrate high traits of financial independence relative to other markets. It is clear that women realise the importance of taking charge of their finances with the goal of being financially independent,” says Sabrina Gan, head of private banking, Asia ex-Japan and wholesale distribution, Southeast Asia.
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She adds: “However, the reality is that women are not as proactive in reaching those goals as men are. This disparity is a result of women not having enough financial knowledge and confidence in managing their own money.”
So, what is holding women back? Of the women who said they are not confident in their financial decision-making, 45% cited rising costs of living as the main concern, followed by worries about market volatility (32%).
Those in Singapore say their savings in the last 12 months have decreased, particularly for 40% of women compared to 32% of men.
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“This could be attributed to a decrease in personal income which could be linked to having to cut back on work for childcare responsibilities or taking a break from work, as a result of Covid-19,” says Fidelity International in a March 7 press release.
Gan says: “The mindset of those in Singapore towards personal finances is in the right place, and financial independence is clearly a key goal for both men and women. Unfortunately, the pandemic has continued to exacerbate cost of living concerns and affected savings, particularly for women.”
With inflation on the rise, the world will continue to feel the after-effects of the pandemic in the coming year, says Gan. “It is important to reiterate that staying invested for the long term will be key in this environment.”
Still, the survey also found that Singaporean women are more independent than women overseas. The global study surveyed Singapore for the first time, joining China, Germany, Hong Kong, Japan, Taiwan and the UK. The sample size for the Singapore-based respondents is 992 men and 1,007 women.
When compared to women from other markets, women in Singapore were more likely to be proactive with their finances. For example, three-fifths of women here (58%) say they hold their finances in their own name, compared to an average of 53% of women surveyed in other markets.
This is especially among Singaporean women aged 35 to 54, and those living as a couple. In addition, more women in Singapore (53%) say they have a savings pot compared to the global average for women (48%), which is important in providing the flexibility to make significant life decisions, says Fidelity International.
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“Investing is a way to supplement regular income and help grow the savings pot, not just for women but for everyone. Some might shy away from it because they feel it is risky and any losses could dent their savings pool or prevent them from achieving their financial goals,” says Gan.
There needs to be a mindset change, she adds. “Avoiding investment or decreasing the amount you save or invest because of market jitters could mean missing out on opportunities from market rebounds, which in the end could cause more impact on income and savings. Staying invested despite market volatility could ultimately help capture steady returns over the long run and help you achieve your financial objectives.”
Photo: Bloomberg / Infographic: Fidelity International
