Why Women Should Start Investing Now
Women live longer but often delay investing. Learn about financial independence and how to start investing for retirement.
Why Women Should Start Investing Now
“I’ll do it later when I’m more settled.” “My husband handles the finances.” “Investing is complicated, I don’t understand it.”
You’ve probably heard — or maybe even said — phrases like these. And you’re not alone. Many Indonesian women postpone investing for various reasons.
But did you know? Women are actually the ones who need financial independence the most. Not because you shouldn’t trust your partner, but because life doesn’t always go according to plan.
This article is specifically for you — Indonesian women who want to take control of your own financial future.
Facts You Need to Know
Women Live Longer
Data from BPS (Indonesia’s Central Statistics Agency) in 2024 shows that Indonesian women’s life expectancy is higher than men’s. This means women need a larger retirement fund for a longer retirement period.
If your husband retires at 55 and passes away in his 70s, you might still be living another 5-10 years. Who will finance your life in those final years?
Women Face More Career Gaps
Unlike men, women often experience breaks in their careers:
- Maternity leave — several months without full income
- Raising children — some choose to leave work temporarily or permanently
- Caring for parents — a responsibility that often falls on women
- Following a partner’s career — moving to a new city or country
Every career break means a break in retirement fund accumulation. If you rely on BPJS Ketenagakerjaan (social security) from formal employment, your contributions stop when you stop working.
BPJS Alone Isn’t Enough
Let’s be realistic. BPJS Ketenagakerjaan is a good safety net, but it’s designed as a foundation, not the only source of retirement income.
Some BPJS limitations for retirement planning:
| Limitation | Impact for Women |
|---|---|
| Limited Pension Benefits | Not enough for a decent life in old age |
| Only for formal workers | Housewives and informal workers need to register independently |
| Stops if you leave work | Career gaps = contribution gaps |
The good news is that housewives and informal workers can now register for BPJS Ketenagakerjaan as independent participants (Non-Wage Earners). But still, you need additional investments for a comfortable retirement.
Why Waiting Isn’t a Wise Choice
Time is Your Most Valuable Asset
There’s an important concept in investing called compounding or compound interest. The earlier you start, the bigger the results you can achieve — even with small capital.
Imagine two scenarios:
Scenario A: Starting at age 25 Investing Rp500,000 per month for 30 years with a conservative return assumption, you have a long time for your investment to grow.
Scenario B: Starting at age 40 Investing Rp1,000,000 per month for 15 years — double the monthly capital, but only half the time. The end result will likely be smaller than Scenario A.
The main message: starting now is more important than starting with a large amount.
Waiting for the “Right Time” is an Illusion
There will never be a perfect time to start investing:
- After getting married? There are new household expenses
- After having children? There are children’s education costs
- After children are grown? You’re already approaching retirement
The best time to plant a tree was 20 years ago. The second best time is now.
Good News: Women are Good Long-Term Investors
Don’t let the stereotype that “investing is a man’s thing” hold you back. Data actually shows the opposite.
Indonesian Women’s Financial Literacy is Higher
The National Survey of Financial Literacy and Inclusion (SNLIK) conducted by OJK (Financial Services Authority) together with BPS in 2024 revealed that Indonesian women’s financial literacy index is higher than men’s — recorded at about 67% for women and 64% for men.
This shows that Indonesian women actually already have a good knowledge foundation. What’s missing is only the courage to start.
Women Tend to Be More Patient
Various global studies show that female investors tend to:
- Not be tempted by excessive trading — more buy and hold
- Take measured risks — not swept up in market euphoria
- Stay consistent with their plan — not panic when markets drop
- Do more thorough research — not just following the crowd
These traits are actually qualities of successful long-term investors. So, stop doubting your abilities.
Women’s Participation in Capital Markets is Increasing
KSEI (Indonesia Central Securities Depository) data shows a positive trend: the proportion of female investors in Indonesia’s capital markets continues to increase year after year. Assets owned by female investors in the capital market also show significant growth.
You’re not alone. More and more Indonesian women are taking control of their financial futures.
Practical Steps to Get Started
1. Understand Your Current Financial Situation
Before investing, you need to know:
- What’s your monthly income (or allocation from the household)?
- What are your regular expenses?
- Do you already have an emergency fund?
- Any debts that need to be paid off?
You don’t need a large income. Even housewives can start by allocating a portion of the shopping money for investing.
2. Prioritize Emergency Fund First
Before long-term investing, make sure you have an emergency fund of at least 3-6 months of expenses. Keep it in savings or deposits that can be easily withdrawn.
Why? Because investments like mutual funds shouldn’t be cashed out suddenly. An emergency fund ensures you don’t need to sell investments when the market is down.
3. Start with Mutual Funds
For beginners, mutual funds are a very suitable choice:
| Mutual Fund Advantages | Explanation |
|---|---|
| Small capital | Start from Rp10,000-Rp100,000 |
| Professionally managed | No need to analyze yourself |
| Diversification | Risk spread across many instruments |
| Easy to buy | Can use smartphone apps |
| Supervised by OJK | Regulatory protection available |
For long-term retirement goals (more than 10 years), consider equity or index mutual funds which have higher growth potential.
4. Set a Fixed Amount and Schedule
Consistency beats amount. It’s better to invest Rp200,000 every month regularly than Rp2,000,000 once and then stop.
Practical tips:
- Automate — set up auto-debit at the beginning of the month, before the money gets spent
- Start small — Rp100,000-Rp500,000 per month is already good to start
- Increase gradually — raise the amount when your income increases
5. Don’t Invest Money You’ll Need Soon
Equity mutual funds can go up and down in the short term. Don’t invest money you’ll need in the next 1-2 years.
Separate:
- Short-term funds (daily needs, emergency fund) → savings, deposits
- Medium-term funds (3-5 years, like a house down payment) → money market or fixed income mutual funds
- Long-term funds (retirement, more than 10 years) → equity or index mutual funds
Special Considerations for Housewives
If you don’t work formally, you can still and should invest. Here are some considerations:
Discuss with Your Partner
Investing doesn’t mean you don’t trust your partner. On the contrary, this is a form of working together to build a future. Discuss:
- Allocation from household income for wife’s investment
- Long-term family financial goals
- What if one of you passes away or there’s a divorce
Uncomfortable topics? Yes. But important.
Have Accounts and Investments in Your Own Name
Make sure you have:
- A bank account in your own name
- Investment accounts (mutual funds, securities) in your own name
- Access to all family financial documents
This isn’t preparation for bad things. This is basic financial independence that every adult should have.
Consider Independent BPJS Ketenagakerjaan
As a housewife, you can register for BPJS Ketenagakerjaan as a Non-Wage Earner (BPU) participant. With relatively affordable monthly contributions, you get JHT (old age savings), JKK (work accident insurance), and JKM (death insurance) protection.
This isn’t a replacement for investment, but an additional layer of protection to consider.
Overcoming Mental Barriers
”I Don’t Understand Investing”
You don’t need to be an expert. Mutual funds are managed by professional investment managers — your job is just to choose a suitable product and deposit regularly.
Start by reading other articles on this site. Understand the difference between stocks and mutual funds and active vs passive mutual funds.
”What If I Lose Money?”
Yes, investing has risks. But not investing also has risks — the risk of your money being eaten by inflation.
If you only save in a regular account, your money’s value will decrease every year due to inflation. Investing is a way to fight inflation and grow your money’s value.
To reduce risk:
- Long-term investing — give time for the market to recover from downturns
- Diversification — don’t put all your eggs in one basket
- Regular investing — average out your purchase price with the dollar-cost averaging method
”I’ll Do It Later When I Have Extra Money”
That “extra” money probably will never exist. Expenses always follow income — this is called lifestyle inflation.
Instead, make investing a mandatory expense, not leftovers. Pay yourself first at the beginning of the month, then use the rest for spending.
International Women’s Day: Time to Take Control
Every year we commemorate International Women’s Day. Many celebrate by posting on social media or attending seminars about women’s empowerment.
But true empowerment starts from financial independence.
Nothing is more empowering than knowing that you can support yourself — not depending on anyone for your basic needs.
Next Steps
After reading this article, don’t just stop here. Take one concrete step:
- Today — Open one mutual fund app and register
- This week — Determine an amount you can invest regularly every month
- This month — Make your first investment, no matter how small
You don’t need to be perfect. You don’t need to be big. What matters is starting.
Your future depends on the decisions you make today. And no one else will make that decision for you.
Happy International Women’s Day. Happy investing.