Many people may think that men and women take drastically different approaches to financial strategies, but at least for investment purposes, that may not be the case.
Approximately 85 percent of women think that taking risks related to investments is something that has to happen, according to a report from the Merrill Lynch Wealth Management Institute. More than 80 percent explained they have confidence in their ability to adjust to the changing investment landscape.
A total of 55 percent of men noted that they want to take charge when making investment decisions, while 50 percent of women said the same thing, the report explained. One of the biggest differences was noting they knew less than others about the investment landscape. Just 27 percent of men reported this, while 55 percent of women said the same.
“Our research reinforces the importance of concentrating on the unique, personal goals of each investor,” said Michael Liersch, head of behavioral finance for Merrill Lynch Wealth Management. “Doing so can identify a deeper understanding of the individual’s concerns and priorities which may better align investments to achieve the outcomes the investor desires. We believe we need to change the dialogue with both men and women, to discuss what really matters to them and what they want their investments to achieve.”
Differences exist on retirement confidence
While many women may be in line with men over certain aspects of investing, there may be more worry about retirement savings from women.
Approximately 56 percent of women think they are saving a sufficient amount for retirement, according to a report from TIAA-CREF. However, 65 percent of men said the same thing.
“Women have unique needs when it comes to achieving financial well-being,” said Teresa Hassara, executive vice president and head of the institutional business at TIAA-CREF. “They tend to live longer than men. They often interrupt their high-earning years to care for children or elderly parents, which is why it’s so important that women connect with financial advice they trust so that they feel empowered to act on it.”
Speaking to a professional increased some women’s retirement confidence. The report noted that 62 percent of those who did this took a closer look at how much they saved, while 58 percent said they changed how they spent money. Another 40 percent said they changed how their retirement accounts are allocated.