Stockholm (NordSIP) – According to a new report by Finnish pension insurance provider OP Financial Group, the gap in men’s and women’s investment assets remains a problem in Finland. Figures show that this wealth gap widens at mid-life (ages 35–44), when Finnish women invest 75 cents for every euro invested by their male counterparts.
“People of this age are typically leading an active family life and working. The busy years of child-rearing, work and other obligations may dictate how much time and money people have left over for investment. The fact that there are more male than female investors in this age group sends a concerning message about the gender distribution of resources,” says Hanna Porkka, Director, Wealth management at OP Financial Group.
According to the Bank of Finland’s statistics, the deposit portfolio of Finnish households was the largest ever at the end of June. The bulk of deposits are in current accounts and other low-interest accounts. Instead, Porkka argues that Finns should be investing. “To my mind, a natural time to begin investing is when you take out a home loan, for example. If you invest while repaying your home loan, you are securing your future and taking advantage of the compound interest effect. Investing can offer various types of financial security throughout life, including during unemployment, illness or other unexpected events,” says Porkka.
Factors explaining why men accumulate more investment assets include pay gaps, how parents share family leave, and differences in investing behaviour. In general, the gender pay gap favours men by 16%, which exceeds the OECD average. Since investing is based on disposable income, the fact that men are normally paid more than women tends to be reflected in the wealth and investments pay gap, since wealth will tend to be the result of accummulated surplus income. Porkka also suggests that women may use their assets first for the family’s common expenses before making investments.
Finally, OP’s statistics show that the media gender gap in investments begin to even out before retirement age and reach 9% (in favour of men) among the over 65-year-olds.
Stockholm (NordSIP) – According to a new report by Finnish pension insurance provider OP Financial Group, the gap in men’s and women’s investment assets remains a problem in Finland. Figures show that this wealth gap widens at mid-life (ages 35–44), when Finnish women invest 75 cents for every euro invested by their male counterparts.
“People of this age are typically leading an active family life and working. The busy years of child-rearing, work and other obligations may dictate how much time and money people have left over for investment. The fact that there are more male than female investors in this age group sends a concerning message about the gender distribution of resources,” says Hanna Porkka, Director, Wealth management at OP Financial Group.
According to the Bank of Finland’s statistics, the deposit portfolio of Finnish households was the largest ever at the end of June. The bulk of deposits are in current accounts and other low-interest accounts. Instead, Porkka argues that Finns should be investing. “To my mind, a natural time to begin investing is when you take out a home loan, for example. If you invest while repaying your home loan, you are securing your future and taking advantage of the compound interest effect. Investing can offer various types of financial security throughout life, including during unemployment, illness or other unexpected events,” says Porkka.
Factors explaining why men accumulate more investment assets include pay gaps, how parents share family leave, and differences in investing behaviour. In general, the gender pay gap favours men by 16%, which exceeds the OECD average. Since investing is based on disposable income, the fact that men are normally paid more than women tends to be reflected in the wealth and investments pay gap, since wealth will tend to be the result of accummulated surplus income. Porkka also suggests that women may use their assets first for the family’s common expenses before making investments.
Finally, OP’s statistics show that the media gender gap in investments begin to even out before retirement age and reach 9% (in favour of men) among the over 65-year-olds.
