Younger women have long had an edge when it comes to investing. That's because they have had access to a wealth of financial knowledge and resources that were often not available to the generations that came before then. But in recent years, baby boomer women have been taking cues from their daughters and granddaughters—and making huge gains in the stock market before they retire, a new report finds.
According to Fidelity's annual Women & Investing Study, the percentage of boomer women who report investing in the stock market increased by an astounding 23% from 2023 to 2024, the largest jump of any generation surveyed (Gen X took second place, with an 18% increase). In total, 71% of women say they invest in the stock market, up from 60% in 2023.
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Gen Z women are still the most likely age group to say they invest, and the most likely to think of themselves as "investors," but the arrival of so many more boomer women to the investing scene signifies a sea change, says Lorna Kapusta, Fidelity's head of women and engagement. Generally speaking, baby boomer women have been more likely to leave financial decisions to their male spouses, which can be to their detriment later in life.
"It ultimately comes down to boomer women gaining more access to financial education and realizing they can be doing more with their money," says Kapusta. "With that also comes a greater understanding of financial needs in retirement."
Women in the U.S. live longer than men on average and have higher health care costs through their lives and into retirement, Kapusta notes. As they learn more about these dynamics, women are being catalyzed to save and invest more in anticipation of these costs.
They may also be going through "changing household dynamics," Kapusta noted, such as a gray divorce or the death of a spouse, and are now the sole financial decision makers, a role they may have never filled before. It makes sense, then, for them to work with financial advisors or on their own to grow their wealth—especially if they are mothers. According to the survey, 71% of women say that investing is a way to build generational wealth, and 39% say their biggest financial accomplishment is providing for their families.
Fidelity's survey also found that baby boomer and Gen X women are more likely to consider themselves conservative investors, compared to millennials and Gen Z who see themselves as taking on more moderate risk.
"This makes sense, since boomer and Gen X women have a little less time to course correct any potential dips in the market," says Kapusta.
More than a third of boomer women said they started investing outside of retirement for the first time in their 50s or later, compared to 63% of Gen Z and 53% of millennials who said they started in their 20s. Though financial advisors often tout the benefits of starting young, Kapusta says she's heartened to see so many older women also getting into the game.
"One thing I like to stress is that it’s never too late to start investing. Yes, it’s certainly ideal to start as early as possible but getting started later is much better than never," says Kapusta. "So even though boomer women got a later start to investing, it’s great to see they’re realizing it isn’t too late."
