Are women ‘better’ investors than men, even though they are less confident? According to studies by the Warwick Business School, Fidelity Investments, and the Journal of Economics, they are.
This is likely because women ‘fiddle’, or trade, less than men, and tend to have a longer-term focus.
So, it depends upon how one defines ‘better’.
Results from a CoreData study of 2,035 respondents show New Zealand women feel less prepared for retirement than men.
The Retirement Commissioner has also looked into government policy affecting women in their retirement planning.
Just over half of men surveyed (50.5%) indicated they feel they are reasonably or very prepared, compared to women (38%).
Although women are about on par with men in KiwiSaver workplace contributions of 3% to 4%, more men appear to be contributing at higher levels.
With markets experiencing swings in volatility, KiwiSaver members may feel hesitant to maintain their contributions. The saying ‘be greedy when others are fearful,’ is the flip side of ‘be fearful when others are greedy’. With the KiwiSaver year-end approaching, it is timely to review one’s KiwiSaver contributions (KiwiSaver year-end is 30 June).
To get up to 50 cents to the dollar up to $521 of ‘free money, members should consider whether they are contributing up to $1,043 for the KiwiSaver year. Some conditions apply, so check with us. We can also review your financial goals and planning, including your insurance covers.
Other interesting observations from the survey: