Baby boomer women are making big gains in the stock market

According to the annual Fidelity Women & Investing Study, the percentage of boomer women who report investing in the stock market increased by a staggering 23% from 2023 to 2024, the largest jump of any generation surveyed (Gen X came in second, by 18% increases). Overall, 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 age group most likely to say they invest and most likely to consider themselves “investors,” but the arrival of many more boomer women on the investment scene means a sea change, says Lorna Kapusta. Fidelity Head of Women and Engagement. Overall, female baby boomers were more likely to leave financial decisions to their male spouses, which can be detrimental to them later in life.

“Ultimately, it comes down to boomer women getting more access to financial education and realizing they can do more with their money,” says Kapusta. “With that comes a better understanding of financial needs in retirement.”

Women in the U.S. live longer than men on average and have higher health care costs throughout their lives and into retirement, Kapusta notes. As women learn more about these dynamics, they are catalyzed to save and invest more in anticipation of these costs.

They may also be going through a “changing household dynamic,” Kapusta noted, such as a gray divorce or the death of a spouse, and are now the sole financial decision makers, a role that can they have not fulfilled it until now. It makes sense, then, for them to work with financial advisors or on their own to grow their wealth—especially if they’re mothers. According to the survey, 71% of women say investing is a way to build generational wealth, and 39% say their biggest financial achievement is providing for their families.

The Fidelity 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 are considered more moderate risk takers.

“This makes sense because boomer women and Gen Xers have a little less time to correct any potential market downturns,” says Kapusta.

More than a third of female boomers said they started investing outside of retirement for the first time in their 50s or later, compared with 63 percent of Gen Z and 53 percent of millennials who said they started in their 20s year old. Although financial advisors often tout the benefits of starting young, Kapusta says she’s encouraged to see so many older women getting into the game, too.

“One thing I like to emphasize is that it’s never too late to start investing. Yes, it is definitely ideal to start as early as possible, but starting later is much better than never,” says Kapusta. “So even though boomer women started investing later, it’s great to see them realize it’s not too late.”