Are You Hindering Your Retirement By Not Investing In Gender Equality?

The Power of Gender Equality in Investments: A Path to a Secure Retirement

As we celebrate Women’s History Month in 2025, it is a timely reminder to address the unique retirement challenges that women often face. Despite the strides made in gender equality, women continue to encounter distinct financial hurdles that can affect their retirement savings. This article offers practical strategies for women, particularly those who prioritize social values and sustainability, to secure a comfortable and values-aligned retirement.

The Financial Benefits of Gender Equality in the Workplace

Research has consistently shown that companies with higher gender diversity in leadership often achieve better financial results. A study by McKinsey & Company revealed that companies in the top quartile for gender diversity are 25% more likely to outperform their peers financially. Similarly, McKinsey’s 2015 report indicated that such companies were 15% more likely to have financial returns above their national industry medians. The reason lies in the diverse leadership teams, which foster better decision-making, higher innovation, and stronger risk management. These findings are supported by YourStake data, where a gender equality optimized portfolio showed higher returns and lower volatility.

Aligning Your Investments with Your Values

In today’s investment landscape, aligning financial goals with personal values has become a core strategy for many. Gender-lens investing focuses on supporting companies that promote gender equality and women’s advancement. Tools such as As You Sow’s Gender Equality Funds tool enable investors to compare mutual funds based on gender-lens scores and financial performance, helping to identify sustainable investment options that align with personal values. This approach not only supports women’s empowerment but also contributes to a more equitable society.

Evaluating the Performance of Gender-Focused Investments

Using data from YourStake, a values-driven research group, we analyzed three distinct investment options to evaluate the performance of gender-focused investments. The iShares MSCI KLD 400 Social ETF, which targets companies with strong ESG ratings, the iShares MSCI ACWI ETF, representing global market exposure, and YourStake’s gender equality optimized portfolio were compared. Metrics such as the percentage of women on boards, workplace equality, and discrimination records were used to define gender equality. The analysis revealed that the gender equality optimized portfolio delivered higher returns across all time periods and had lower volatility compared to broad-market benchmarks, making it both profitable and stable.

Taking Action: Steps to Invest in Gender Equality

For those eager to start investing in gender equality, there are several actionable steps. Begin by assessing your portfolio’s alignment with your values using tools like As You Sow’s Gender Equality fund Screener. Consider gender-lens ETFs such as the iShares MSCI KLD 400 Social ETF. Additionally, working with a financial advisor specializing in values-aligned investing can provide tailored guidance. Networks like First Affirmative offer advisors who focus on ESG and gender equality, ensuring your investments align with both your financial and ethical goals.

Conclusion: Empowering Women Through Investment

In conclusion, investing in gender equality offers a compelling blend of financial returns and ethical impact. As women navigate retirement planning, proactive investment strategies can pave the way to a secure and fulfilling future. By embracing available resources and aligning investments with personal values, women can take active control of their financial futures while making a positive societal impact. Whether through ETFs or customized portfolios, the path to empowerment starts with informed and values-driven decisions.