Women starting to invest earlier

| 10 Mar 2022

More than a third (35%) of younger women said they started investing with a modest sum of money to get comfortable first, according to Fidelity's 2022 Money Moves Study released on 1 March to mark the start of Women's History month.

In fact, 46% of all study respondents said it is okay to begin investing with any amount of money as it is more important to take the first step.

Starting early

The study found that women currently aged 18-35 years old are starting to invest nearly a decade earlier than women aged 36 and older. This younger generation of women started investing at an average age of 21, compared with age 30 for older women who started to invest during the same age range.

Besides starting an investment account by age 21, Fidelity’s study showed that younger women also opened a retirement account even earlier, at age 20, compared to their older peers who opened one at age 34.

Fidelity illustrated the power of compounding returns by comparing a person starting to invest at age 25 to one starting at age 40.

This is how much an investor age 67 could have accumulated by contributing $50 per month:

Starting at

Total Investment

Ending Balance

Age 25



Age 40



* This example is for illustrative purposes only and assumes (1) a consistent $50 monthly contribution throughout the time frame (2) no withdrawals, and (3) a 7% annual nominal rate of return, compounded monthly. This illustration does not factor in taxes or fees and does not represent the performance of any security. Each person’s account may earn more or less than this example.

While being mindful that some younger clients might not be in a position yet to start putting aside funds for their retirement (26% of those surveyed say they have not invested more because they cannot afford it), the figures above should provide food for thought for those who have the means to do so.

Purposeful investing

Younger women (43%) more so than women aged 36 and above (34%) are proud of the actions they are taking that will improve the future, whether making a difference at large, or helping themselves and their families. Fidelity’s customer data showed that women are directing a higher portion of their contributions into sustainable investment products, aligning their investments with ESG issues.