By Paula Aven Gladych
Women are more concerned about immediate financial concerns than men and are more likely to overlook saving for retirement when setting their financial priorities, according to BlackRock’s Global Investor Pulse Survey.
The survey polled more than 17,500 people in 12 nations, including nearly 9,000 women globally.
It found that women are more likely than men to emphasize strengthening day-to-day financial security via saving and debt reduction. When asked what they would do if they earned an extra $200 or equivalent each month, women globally were more inclined than men to say they would save more generally, 45 percent vs. 38 percent, and pay off debt, 28 percent vs. 23 percent, as well as spend more on their children, 15 percent vs. 11 percent.
Women also are less likely than men to say they have begun to save for retirement, 52 percent vs. 59 percent.
In the United States, both men and women prioritize retirement, but while 55 percent of American men say they understand how much they need to save for retirement, only 45 percent of women do. Just 53 percent of women say they have begun to save for retirement, compared to 62 percent of men.
“Simply put, when it comes to money, women and men today see the world quite differently,” said Sue Thompson, managing director and head of the Institutional Asset Management and RIA Channel at BlackRock. “Women have a profoundly sober financial perspective, apparently more influenced than men by the realities of today’s market volatility and ongoing economic uncertainty. They place greater emphasis than men on day-to-day financial planning and maintaining the household balance sheet—but this focus also seems to undercut engagement around longer-horizon activities such as retirement planning as well as investment.”
More than half of women globally, compared to 47 percent of men, agree that they are not willing to take any risks with their money and 22 percent of women and 34 percent of men say they are willing to take on higher risks to achieve higher rewards.
Only 21 percent of women worldwide say they are comfortable investing in the stock market, compared with 33 percent of men.
In the U.S., women lag behind men in knowledge and use of some basic financial principles and products.
They also are less knowledgeable and express less interest in saving and investing. Only 41 percent of U.S. women say they are knowledgeable about saving and investing, compared to 57 percent of U.S. men.
BlackRock provides investment management, risk management and advisory services for institutional and retail clients worldwide.
Originally published on BenefitsPro.com