Women are increasingly aware of the importance of managing their financial wellbeing and taking steps to take control of their finances. However, in a recent study titled, Next generation: Rewriting the rules of engagement, we found that despite this awareness, women still continue to have great concerns about their financial future.
Wavering confidence
Of those surveyed, 72 per cent of men believed they are confident in their ability to evaluate investment opportunities, compared with less than half of women, indicative of an issue around women’s confidence in their financial abilities, and therefore the steps that they take to manage their finances.
Notably, the research found that only 13 per cent of women believe they will achieve their long-term financial goals, and that just 18 per cent are very confident in their ability to manage their day-to-day finances as well as their big picture finances.
“Women recognise how important it is to be financially aware. We are seeing people becoming more vocal about addressing issues such as how women can contribute more to their superannuation which is positive progress,” said Lauren Jackson, Head of Wholesale Sales, Australia.
“However, what we should tackle next is the gap in the confidence and faith that women have about their own ability to manage their financial situation, as this will have a knock-on effect on the decisions that women make about investments and managing money.”
Achieving financial goals
When it comes to strategies to help them achieve their financial goals, almost one-in-four women say they have never invested at all, compared to 10 per cent of men.
Just 16 per cent of female respondents said they have seen a financial adviser, compared to 22 per cent of men. This could be due to the influence of money worries, with over half of the women surveyed saying they are concerned about the cost of seeing an adviser (55 per cent of women compared to 46 per cent of men) as well as the fees and charges on investments (61 per cent of women compared to 55 per cent of men).
“The impact of this discrepancy is real, particularly in the current economic environment,” continued Lauren. “Cost-of-living pressures are being felt very keenly by women, with three quarters of women saying they have reduced spending on non-essentials compared to 60 per cent of men. This could create another barrier to their willingness to invest.”
Seeking advice
Compared to a third of men surveyed, almost half of the women said they are worried about finding someone they can trust and interestingly, a quarter of women showed concern about finding help with someone who can speak to their level of understanding.
Financial institutions have a role to play to help support women in achieving financial equality and helping to shift perceptions.
Of the women surveyed, around one third said they are more likely to turn to financial news websites and publications, as well as friends and family to find advice.
It is clear that more needs to be done to improve financial understanding amongst all Australians but in particular women, in light of their longer lifespans and lower superannuation balances.
