Studies have shown women have a tendency to invest more conservatively than men (out-performing males by 1% a year) and are better able to manage debt than male counterparts (with 6 out of 10 loan defaults made by men).
Does this mean females are better at managing finances than males? Yes it does!
The results are in and it’s True!
According to a national survey of 1,500 Australians conducted by Sunsuper on managing household finances –a greater number of men thought their partner was better at managing the household finances than women did.
Survey Results – Who is better at managing household finances
Women are also more confident when it comes to finances…
Females are more likely than males to rate their own ability to manage the household finances as ‘excellent’.
[The full Sunsuper report is available here]
Survey results – Rate your ability to manage the household finances (from 1-10)
In relationships often one partner is better with numbers than the other so they will assume the responsibility of managing the finances.
From our experience working with both males and females, singles and couples…
We have found women are generally more risk adverse than men, and while this is an excellent trait for keeping household finances in great shape, it can limit the attention given to investment options required for longer term wealth building.
Of interest from Sunsuper’s report was a comment from Ann Fuch (Sunsuper’s Retail Distribution and Advice National Manager) who said “often we can get caught up in managing the day-to-day finances… but we need to be careful to plan for and not lose sight of long-term financial goals,”
Long-term planning concerns are echoed in a separate report from Prudential (Financial Experience & Behaviours Among Women) which found 75% of women surveyed believe having enough money to maintain their lifestyle in retirement is very important, but only 14% felt very confident they will be able to achieve this – a gap that has remained virtually unchanged from 10 years ago.
Retirement concerns are not gender specific
According to HSBC’s ‘Future of Retirement’ report more than 45% of Australian pre-retirees told the survey they cannot afford to prepare adequately for retirement, among the main reasons why were mortgages and other debts.
According to Graham Heunis (head of retail banking and wealth management at HSBC Australia) “Life is full of reasons for putting short-term spending before long-term planning” Mr Heunis also said “Australians are in denial about retirement planning… they need to take action and start saving now”
Super is not your only option for long-term planning…
For many Brisbane families (and singles) better structuring personal finances today can lead to a more comfortable retirement, often without drastic changes to current lifestyle or spending habits…