Many women invest and save for retirement in their early 20s, study finds

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Young women prioritize investment and retirement savings goals.


Key points

  • A recent study found that women are investing and saving for retirement in their early twenties.
  • Take a look at the financial decisions young women are making to prioritize their goals and prepare for the future.

Young women prioritize investing and saving for retirement. Despite the struggles of the pandemic and other life challenges, young women are taking steps to prepare financially for the future. A recent Fidelity survey found that young women between the ages of 18 and 35 are investing and saving for retirement in their early 20s. Keep reading to learn more about the important financial decisions women make.

Women seek financial independence

March is Women’s History Month, and it’s a great time to recognize women’s accomplishments and the accomplishments they continue to make, including celebrating financial gains. Young women are taking control of their finances and prioritizing financial independence.

Fidelity’s 2022 Money Moves study looked at the financial decisions adults make. More than 2,000 adults aged 18 and over were interviewed. This survey defines young women as between the ages of 18 and 35, while older women are over 36.

The study revealed that 57% of all women are motivated to invest their money for financial independence. The data also shows that young women start investing and saving for retirement in their early adult years.

Young women focus on their financial goals

Here are some of the more notable stats:

  • On average, young women opened a brokerage account at age 21
  • On average, young women opened a retirement account at age 20
  • Half of young women surveyed started investing in the last six months or plan to do so in the next six months
  • 37% of young women have created or updated a financial plan in the past six months

These data show that many young women have already started investing and saving for their retirement or plan to do so soon.

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It’s exciting that the next generation is taking advantage of the growing financial education resources and embracing their financial goals.

Women continue to face setbacks

As women save for the future, many women (young and old) face barriers that prevent them from investing more of their money.

Here are some notable findings from the Money Moves 2022 study:

  • 26% of all women surveyed haven’t invested more because they can’t afford it
  • 20% of all women surveyed do not invest more because of risk

Women are paid less than men

It’s no surprise that many women can’t afford to invest as much money as they want.

The pay gap between men and women is real.

The Institute for Women’s Policy Research studied the gender pay gap and found that in 2021, women only earned 83.1% of what men earned when looking at the median weekly earnings of full-time workers .

The pay gap is even worse for women of color.

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In 2021, Hispanic women earned 58.4% of what white men earned for full-time work. Black women earned 63.1% of what white men earned for full-time work.

More progress needs to be made. Hopefully these pay gap statistics change for the better and more women start getting the pay they deserve.

Equal pay would allow more women to prioritize their financial goals.

It’s not too late to start investing

If you’re a woman who wants to learn more about investing and financial planning, we have plenty of personal finance resources that you may find helpful.

If you’re hoping to start investing soon, check out our list of the best stockbrokers for inspiration. If you need advice on choosing a retirement account, this article discusses the pros and cons of Roth IRAs and traditional IRAs.

You can make a big difference and have a significant impact on your financial well-being by taking small steps now.

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