A study conducted in the spring of 2014 by UBS Wealth Management America, reflects that there are still big gender differences between men and women with regard to financial decisions. The study indicates that even though both spouses believe that they are equally involved in family finances, women are more likely to pay the day-to-day bills and be less involved in investment decisions. Men are more likely to deal with long-term planning and be less involved regarding charitable giving decisions.
Regardless of age, less than 20% of women make investment decisions. “Fewer than one in five Millennial (15%) and GenX (18%) women make investment decisions, usually leaving that to their partners” (UBS Investor Watch 2Q, 2014). A majority of these women report being satisfied with their husband’s investment choices until retirement. That being said, after retirement these women are significantly more worried about their financial security than other retired women.
The study also reflects that when investing, men are more likely to try to “beat the market” as a sign of success. Women investors are slightly more content than men with a small guaranteed rate of return and are more focused on personal financial goals than with how their investment results compare with the market.
Unfortunately, only one in four couples stayed equally involved in most financial decisions, including investing. These couples report the fewest financial concerns and feel most confident about the likelihood of achieving their money goals.
On average, women outlive men, and women who have not taken an active role in investing as an equal partner in marriage will be less confident about the stability of their retirement years and more worried about outliving their money as a widow.
Source: UBS Investor Watch, Analyzing Investor sentiment and behavior. 2Q 2014.
