Why women are better investors in the long term

It's a bit of a paradox. Statistically, women have a longer life expectancy than men. This also gives them more time to let the compound interest effect – with the help of which the money invested continuously increases – work for them. And if you want to maintain your standard of living in old age, that's another reason to invest in high-yield investments.

So although women have every reason to invest more and take a greater interest in money and financial matters, they do so far less than men, at least in Germany.

One consequence: on average, when they retire, female pensioners only have three quarters of the assets that pensioners have at this point, according to a recent study by the management consultancy WTW. The reason for this is on the one hand the income situation during working life, but on the other hand the differences also have to do with the female disinterest in money issues.

"Women are less concerned with their finances and therefore also with the subject of financial investments," says Jessica Tien from Spiekermann asset management

“Until that year, women were not allowed to open their own bank accounts. It wasn't until 1969 that women were declared legally competent.” They were allowed to buy everyday goods, but larger purchases were taboo. "Fortunately, equality now prevails in Germany," says the portfolio manager. "Women and men have the same opportunities to organize their private provision and build up their assets independently."

At least in theory. Especially when it comes to long-term investments, women are still underrepresented. Statistically, they start building their own fortunes ten years later than men. On average, women are almost 30, while men start making provisions for their old age in their early thirties.

Especially with a view to the stock market, i.e. the more profitable investments, the fear of contact seems to be great. According to a study commissioned by the Quirin private bank, 44 percent of women have an overnight and time deposit account and 35 percent have a savings account. However, only 23 percent use index funds or ETFs.

Only a third of those who save with shares or equity funds in Germany are women - with a share of the population of more than half. The 8.1 million shareholders are opposed to 4.7 million female shareholders, according to current figures from the Deutsches Aktieninstitut (DAI).

This is not explained by the fact that women are fundamentally indifferent to profits and increases in value. "High return" is at least as important an investment goal for them as it is for men. In the Quirin-Privatbank survey, 61 percent of savers named a high return as their savings goal, compared to 60 percent of men.

Even more important to them is “high security”: 87 percent said it was a priority, compared to 76 percent for men. "Most women are more security-oriented and not so willing to take risks," says Michaela Pircher, branch manager of the wealth advisor Wealthgate in Stuttgart.

Christiane Lauer, Managing Director of Frau-Invest Investment Advice in Rheinbach, agrees: “In a way, women are more cautious than men. That sometimes prevents them from investing.”

The results of the Quirin survey confirm this. "I'm a bit afraid of making an investment because I could make a loss" - 50 percent of the women surveyed answered yes to this sentence, but only 34 percent of the men. Another example: Only 13 percent of the women correctly stated that the “investment topic is fun” for them, but 31 percent of the men did.

For Christiane Lauer, this also has to do with the fact that investors often want to understand exactly what or how they invest their money, so their demands are higher.

Women also place more value on personal advice, where their questions are answered. This is also repeatedly reported from practice and corresponds to the results of surveys. So more information is needed. Readers - and of course also readers - of WELT now have the exclusive opportunity to have their savings strategy checked by wealth professionals. "More money, secure assets" is the name of the campaign in cooperation with V-Bank, for which you can now register by telephone or on the Internet.

However, once women have made up their minds, they often make more accurate choices than men when it comes to investment options. "In the long term, women are better investors," says Christiane Lauer. Women do not need any different products than men, but different and better advice. "Women," says Markus C. Zschaber, founder of V.M.Z. Wealth management in Cologne, "are more conservative on the one hand and on the other hand make a lot of effort to get information in order to familiarize themselves with the topic."

As various customer surveys and studies have shown, there is also a striking pattern: investments in individual stocks are more attractive to investors than to female investors, the same applies to trading, i.e. speculative buying and selling on the stock exchange.

Once they get their act together, women often orientate themselves towards the long haul. "Women are long-term oriented and therefore usually more solid on the road," says Petra Ahrens, director of Maiestas Vermögensmanagement in Cologne. The focus is not on quick profit and speculation, so there is no motivation to gamble. The right approach is all the more important.

In order for girls and young women to start building up their own wealth early on, something has to change on many levels, says Ahrens. “Parents should introduce their children to financial issues on an equal footing. This can perhaps be settled with pocket money, with the first mobile phone contract or by setting up a savings plan.”

Securities savings plans in particular offer a great opportunity: Investing with regular, but rather small installments leads to the systematic accumulation of assets. The advice of asset manager Tien is: "Start early and in small steps, first with a securities savings plan and let the children participate in the development."

In this regard, there are actually signs of emancipation among the younger generation. Of the 820,000 people who, according to the DAI, decided to save in shares last year, the vast majority were women: 338,000 young investors compared to 482,000 young women.

"Young women are open to the stock market and shares," observed Mathias Lebtig, Managing Director of FP Asset Management in Freiburg. "Compared to young men, female investors of the same age invest more often monthly via savings plans, thus regularly building up assets and smoothing out fluctuations in the financial markets at the same time."

There is something else that many people notice: "When it comes to investing, sustainability is much more important to women than it is to men," says Markus Richert from Portfolio Concept. This can now be taken into account right from the start when building wealth.

For example, the UBS MSCI World Socially Responsible ETF (WKN: A1JA1R) contains shares in 380 large companies from the industrialized world that meet particularly strict criteria in terms of environmental and climate standards, but also dealing with employees and social responsibility. The index fund is ideal for a savings plan. That would be a good start - not just for women.

In the "More money, secure assets" campaign by WELT and V-Bank, independent asset managers analyze your portfolio and give you tips for optimization. The results are briefly documented in writing. The check is free. You do not enter into any obligation by registering. The only requirement is that you have assets of at least EUR 25,000 or want to invest such an amount. Confidentiality is guaranteed. Register by calling 0800/44 44 694 (free of charge from a landline, Monday to Sunday from 6 a.m. to 10 p.m.) or online. Please enter the password WELT AM SONNTAG. The data is transmitted in encrypted form. You will receive feedback within five working days. With your registration you consent to the collection, processing and use of your data for the purposes of this campaign. V-Bank is a bank that works exclusively for independent asset managers and institutional clients. It does not operate its own private customer business, nor does it itself offer advice or its own products.

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