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Data & Research October 24, 2017
Women Projected to Be Significantly Less Affluent Than Men, UBS Finds
The difference owes to the pay gap between men and women, the tendency of many women to take a career break to raise or care for family, and women’s longer life expectancy.
Reported by Lee Barney
Women
are projected to have significantly less wealth than men in their lifetime, UBS
says in its report “Taking Action: How women can best protect and grow their
wealth.”
The reasons for the disparity are varied, though not unexpected. For one, a 21% pay gap exists between men and women; additionally, women
tend to leave the work force to raise or care for family, and to live longer, UBS says. In the U.S., women are projected to live 6.7 years more than men. Women are also more likely to work part time, and they
tend to invest more conservatively, UBS says.
However, the firm says, if women invest in a disciplined way and take the
appropriate level of risk, they can be better prepared for retirement. Women
are more likely to remain invested in the markets than men and less likely to
try to time the market, UBS says.
The firm moreover says that women want to invest in companies that “have a meaning and
purpose for them. They are also more inclined to invest in businesses with
diverse leadership.”