National Capital: Women should back themselves on investment

In its fifth quarterly report on KiwiSaver, National Capital says women, on average earn 25% less salary than men. This, combined with a less growth-oriented investment strategy favoured by women, means the KiwiSaver gender gap at retirement could reach as much as $61b.

While major systemic change is needed to close the wage gap, focusing on investments that aim for higher growth would give women more money at retirement, says the report.

It cites analysis by US fund manager Fidelity, that showed over a 10-year period, women out performed men by 40 basis points. However they also under rated their ability as investors compared to men.

A range of studies in the recent past have shown women achieve better investment results than men. In  2022,  Wells Fargo found that women only take around 82% of the risk men take, yet still earn higher risk-adjusted returns over time.