Retirement

Women in investing: strategies for financial empowerment

Women racing on a track, symbolizing empowerment and strength in the pursuit of financial independence
Mar 08, 2024|ByBlackRock Retirement Perspectives

Key points

  • 01

    Women face unique retirement savings challenges

    Women face unique challenges when it comes to saving for retirement, including gender pay gaps, higher student debt, caregiving responsibilities, and longer lifespans.

  • 02

    Tools and tactics can fortify women's financial independence

    Women can strengthen their financial independence and long-term wealth by using diversified investments, seeking professional financial guidance, and consistently contributing to retirement plans.

  • 03

    Guaranteed lifetime income can provide greater certainty

    Access to workplace retirement plans boosts savings rates, but women, especially women of color, often work in jobs without such benefits, highlighting the need for solutions like guaranteed lifetime income.

The Bid podcast
The Bid podcast /
Women In investing: Strategies for financial empowerment

The good, the bad and the diversified

For The Bid podcast’s International Women’s Day episode, Gargi Pal Chaudhuri, Head of iShares Investment Strategy and Markets Coverage at BlackRock, and Anne Ackerley, BlackRock’s Senior Advisor on Retirement, sat down for a conversation about women and investing – the good, the bad, and the diversified.

From razors to 401(k)s, the two leaders shared their thoughts on how women can fortify their financial independence and build wealth for the long-term.

Looking at progress, Gargi pointed out that “women have come back to the labor force in droves,” and their wages were higher every quarter in 2023 than the previous quarter. But we still need to mind the gender gaps, they both cautioned: between men and women’s earnings and wealth overall, citing factors like higher student debt, time taken for caregiving, the “pink tax” on goods like razors, and longer lifespans.

15 to 20 times more likely to save

Because women live longer, their money needs to last longer. To that end, Anne said we need to find solutions for helping workers turn retirement savings into guaranteed lifetime income. The good news is, she said, women participate in their 401(k)s at the same rate as men – and tend to contribute more to them.1 But women, and particularly women of color, disproportionately work in jobs that don’t have access to a workplace retirement plan2.

And yet, “we know that when you have access to a plan at work, you’re 15 to 20 times more likely to save3.”

Gargi’s advice on the right financial tools: “You don’t need to know everything about everything.” Just invest in a diversified manner and do so consistently. Get the financial guidance you need, too, she said, whether it’s hiring a professional or simply reading one article a day. Or, for Gargi, just ask Anne. “When I didn’t know how to talk about money,” she recalled, “I came to Anne to ask for advice.”

To listen to more episodes of The Bid, which breaks down what’s happening in the world of investing and explores the forces changing the economy and finance, click here.