The tendency for women to shy away from taking appropriate levels of risk in their portfolio and their lower risk tolerance could be leading to lower superannuation balances and costing them tens of thousands of dollars, a national survey has revealed.
National Australia Bank (NAB) Asset Management’s analysis of gender based risk preferences across Australia revealed that the percentage of women with a high risk allocation was at just 30 per cent across all age groups, 7.5 per cent lower than men.
The research, based on more than 100,000 advised clients around the country, found that the difference in high risk allocation among women in the 30 to 40 age group is five per cent, while it was nearly six per cent for those in the 60 to 80 age group.
The research also found female investors switched their asset allocation 20 per cent less frequently than men.
NAB general manager of corporate superannuation, Lara Bourguignon, said the results were not surprising, given women 57 per cent of women were less likely to feel prepared for retirement, compared to 32 per cent of men, while over half of women who were retired feared outliving their savings.
“When we look past the super balance differences and dig a little deeper into how Australian women feel about their financial position, we find this lack of confidence seems to contribute to holding women back from bridging the retirement gap,” Bourguignon said.
NAB Asset Management portfolio specialist, Kajanga Kulatunga, said the research also explored whether anatomical differences in the male and female brains influenced investment choices.
“We need to be careful about liberally throwing the phrase ‘financially illiterate’ to describe the financial choices women make,” he said.
“Our research shows these choices may be consistent with anatomical structures of the brain.”
