The economic gender inequality could continue for 267 years

Regarding economic inequalities based on gender (gender gap) it would seem that we have made tremendous progress. And yet, in its report from 2021, World Economic Forum Notes that gender inequalities in terms of 'participation and economic opportunity' have so far been reduced to only 58%. Since the publication of the report in 2020, there has been a marginal improvement, so the Forum estimates that it will take another 100 years to close this gap in 267%. 

A significant part of this inequality can be explained by the lower activity of women in the labor market, which is also overlapped by the wage gap (the ratio of wages between men and women in similar positions) amounting to as much as 37% on a global scale. 

Things get even more complicated when you look at the results of the Fidelity study, according to which women save more than men, but the advantage is very small. Women save about 9% of annual earnings, while for men it is 8,6%. The difference in the annual earnings of both groups is de facto the main cause of inequality, and savings alone will not be enough to compensate for it. In addition, the average interest rate on a savings account is significantly lower than the return on investment in the stock market. Nevertheless, more men than women participate in the exchange. 

The situation is therefore as follows: women are a minority in the overall workforce, and those who work tend to earn less than men in similar positions, and although women can save more, savings do not give them optimal returns. In summary, by giving up investment, women put themselves at a disadvantage in taking control of their own financial future.

More can be lost nie when investing, why not start now? Here are three very real reasons why women should start investing today.

# 1. Women live longer and need more pensions than men.

Although women's wages are generally lower than men's, women live, on average, six to eight years longer, according to the World Health Organization. This means that if they want to have additional funds in retirement, they must accumulate more than men due to the longer retirement period. 

# 2. Investing is the only solution if you want to avoid a decline in the value of your assets.

When the interest rate of savings accounts fluctuates around 0%, a inflation around 3% globally, investing is not only necessary to increase the amount of assets held, but above all to avoid a decline in their value.

Research has shown that by opting out of stock market trading to provide retirement and other savings, welfare is worsening (welfare losses) at 12%. In a situation where interest rates are around 0% or even negative, investing becomes more important than ever in terms of increasing your wealth.

# 3. Since you are working hard for your money, why shouldn't your money work for you through investments?

One of the key ways to take care of your financial future is to ensure that your money works as hard as you do. Whether as interest on a savings account, dividends on stocks or rent on investment properties, the funds you earn from savings and / or investments in stocks or real estate are passive income where your money works for you while you are "sleeping" .

In 2020, globally Saxo Bank recorded an increase in the number of new investors by 354% compared to investors (288%). However, the difference in the activity of women and men in the market may decrease even more. Women are able to solve the problem of the investment gap on their own, without the help of others, by taking action today. While the road to financial freedom is long and requires attention, focus and determination, by investing regularly we diversify our income streams, providing ourselves with a supplement to our earnings or pension.

Author of the article: Saxo Bank