Many Women Are Investing and Saving for Retirement in Their Early 20s, Study Shows

Young women are prioritizing investment and retirement savings goals.

Young women are prioritizing 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 ages 18 to 35 are investing and saving for retirement in their early 20s. Keep reading to learn more about the important financial decisions women are making.

Women seek financial independence

March is Women's History Month, and it's the perfect time to acknowledge the achievements women have made and the accomplishments they continue to make -- including celebrating financial wins. Young women are taking charge of their finances and are prioritizing financial independence.

Fidelity's 2022 Money Moves study examined the financial decisions that adults make. Over 2,000 adults aged 18 and older were surveyed. This survey defines young women as 18 to 35 years old while older women as 36-plus years old.

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

Young women are focusing on their financial goals

These are some of the most notable stats:

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

This data shows that many younger women have already started investing and saving for retirement or plan to do so soon.

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

Women continue to face setbacks

While women are saving for the future, many women (both young and old) face roadblocks that keep them from investing more of their money.

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

• 26% of all women surveyed haven't invested more because they can't afford it
• 20% of all women surveyed aren't investing more because of the 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 gender pay gap is real.

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

The pay gap is even worse for women of color.

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

More progress needs to be made. Let's hope these pay gap stats change for the better and more women begin to receive the pay they deserve.

Equal pay would enable 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 offer many personal finance resources that may be helpful.

If you hope to begin investing soon, look at our best stock brokers list for inspiration. If you need guidance choosing a retirement account, this article discusses the pros and cons of Roth IRAs and traditional IRAs.

You can make a big difference and significantly impact your financial wellbeing by taking small steps now.