SINGAPORE: An article from The Straits Times cited how Singaporean women need to get confident with investing for retirement and financial security.
However, a few studies indicated that most Singaporean women are antagonistic toward investing and that they perceive it as a form of gambling.
Factors contributing to the aversion of Singaporean women to investing
The aversion of Singaporean women to investing and their perception of it as gambling can be attributed to several factors. First, Singaporean women are generally more risk-averse and conservative when it comes to investing.
A study by Franklin Templeton published by the Singapore Business Review revealed that more than half of young Singaporean women believe in investing early but are cautious about taking risks.
This risk aversion is further highlighted by the fact that 39% of women have no investments, compared to 31% of men, an article from The Straits Times reported.
This conservative approach to investing is likely due to a natural inclination towards caution and a desire to protect their financial security.
Second, an OCBC report indicated that a significant number of Singaporean women view investing as akin to gambling. According to OCBC, many women perceive investing as a form of gambling, which deters them from engaging in it.
According to an academic article from the Journal of Economic Psychology, this perception is influenced by a lay theory that gambling is more likely to cause losses and less likely to bring gains than investing.
This belief system, combined with a lack of confidence and knowledge about financial markets, exacerbates their aversion to investing.
Moreover, the socio-cultural and environmental factors play a crucial role in shaping these perceptions. The grounded theory model suggests that the fear of losing money and the addictive nature of gambling are significant deterrents for women.
According to a recent article from BMC Public Health Journal, this fear is compounded by the societal emphasis on financial security and the potential risks associated with investing, which are often equated with the risks of gambling.
Strategies to make investing a more viable and secure financial scheme in the eyes of SG women
To encourage Singaporean women to view investing as a more viable and secure financial strategy rather than gambling, several specific strategies can be employed:
Enhance Financial Education
A Schroders Personal Wealth article suggested implementing comprehensive financial education programs targeting women. These programs should focus on the differences between investing and gambling, the importance of diversification, and the long-term benefits of investing.
This approach can help women understand the risks and rewards of investing, making it seem less like a gamble.
Create Supportive Communities
Develop platforms and communities where women can share their experiences and learn from each other. This can help build a collective understanding and confidence in investing, reducing the fear of loss associated with it, as discussed in a webinar from EndowUs.
Offer Goal-Based Investing Options
Introduce goal-based investing strategies that align with women’s personal and financial goals. This approach can make investing more relevant and less abstract, thereby reducing the perception of it as a gamble.
Address Societal and Gender Biases
Implement strategies to address and debunk gender biases that may influence women’s perceptions of investing. This includes fostering gender diversity within the investment industry and promoting the success stories of women investors.
Provide Access to Diverse Investment Options
Offer various investment options catering to different risk appetites and financial goals. This can help women find investment products that align with their comfort level and financial objectives, reducing the perception of investing as a high-risk activity.
Regulate and Control Gambling
Implement stricter regulations on gambling to reduce its normalization in society. This can help create a cultural shift where investing is considered more responsible and secure than gambling.
By implementing these strategies, the perception of investing as gambling among Singaporean women can be significantly altered, encouraging more women to invest as a means of financial growth, security, and a way to achieve a comfortable retirement.