Men more likely to take risks with their money than women

Zz1jZTQ1NGMwNzZhYjZlYWY2YjQzZDg5Y2M3ZGU5N2JiNw==.png
  • Overall men have a higher appetite for risk with investments than women, with just under a quarter (24%) of men compared to 14% of women likely to invest any extra money they have into riskier investments such as stocks and shares.
  • Just 34% of women said that they are confident that their chosen savings and investments will deliver strong returns over the next five to ten years, compared to over half (51%) of males surveyed.
  • Men are more likely to opt for potentially higher returns that carry greater risk, with 65% of women compared to 46% of men saying that their risk appetite is low or zero.

Research carried out by investment and pensions company, Aegon, reveals the investment gender gap that exists when it comes to taking risks with money and the disparity in behaviour between men and women when making decisions about how to invest.

Looking at attitudes towards investment risk, men have more confidence than women when it comes to investing in riskier strategies. Men are far more likely than women to invest any extra money they may have into riskier investments such as stocks and shares, with 24% of men compared to 14% of women saying that they are likely to do so. Supporting this, just 6% of women compared to 17% of men say that they are comfortable taking risks with their money.

Compared to their male counterparts, women lack confidence that their chosen investments will deliver and have lower expectations about potential returns. Over half (51%) of men said that they are confident that their chosen savings and investments will deliver strong returns over the next five to ten years, compared to just 34% of women.

Research shows that women are more likely to opt for lower returns for minimal risk, with under half (46%) of men compared to 65% of women, saying that their risk appetite is low or zero, preferring minimal potential losses with modest gains. At the other end of the spectrum, 18% of men compared to just 8% of women have a high or adventurous approach to investment risk, preferring potentially higher long-term returns for increased risk.

Nick Dixon, Investment Director at Aegon comments:

“Our research shows that, compared to men, women are more likely to lack confidence when it comes to making investment decisions and hold back from taking risks with their investments. There a number of societal, behavioural and economic reasons why this is the case but the reality is that avoiding risk generally leads to lower returns. Over the long-term, exposure to a diversified range of risk assets typically leads to greater returns than the perceived safety of cash. Seeking sound financial advice improves understanding of investment risks vs returns and builds confidence that a chosen investment strategy can deliver in line with an individual’s goals.”

 

Further information

Research carried out in October 2018 among over 2,000 UK adults, weighted to be nationally representative.

Alex Messis

PR Manager

Aegon UK

alexandra.messis@aegon.co.uk 

Tel: 0131 549 2920

 

Notes to Editors

  • In the UK, Aegon offers retirement, workplace savings and protection solutions to more than three million customers and employs more than 3,000 staff. More information: aegon.co.uk
  • As an international life insurance, pensions and asset management company based in The Hague, Aegon has businesses in over twenty markets in the Americas, Europe and Asia. Aegon companies employ over 25,000 people and have millions of customers across the globe. Further information: aegon.com

Aegon is a brand name of Scottish Equitable plc. Scottish Equitable plc, registered office: Edinburgh Park, Edinburgh EH12 9SE. Registered in Scotland (No. 144517). Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 165548. An Aegon company.www.aegon.co.uk                                                                        

© 2019 Aegon UK plc.