Administration November 10, 2001

Women More Risk Averse ? Or More Honest?

October 11, 2001 (PLANSPONSOR.com) - Affluent women are more risk averse than their male counterparts, but both sexes lack knowledge on retirement investment alternatives for conservative investors, a survey by Nationwide Financial finds.
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Results of the survey reveal that, in 2001:

  • three-fifths of men were willing to take substantial financial risk for possible substantial gain, compared to 57% in 2000,
  • while only 36% of women were willing to do so, compared to 40% in 2000

Both men and women were less knowledgeable about many protection products, such as fixed annuities. Only 22% of respondents were very knowledgeable about fixed annuities. This percentage did not vary by sex.

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Women also report that they are less knowledgeable about key financial products than their male peers. In fact,

  • while 70% of men reported being very knowledgeable about mutual funds,
  • only 51% of women describe themselves that way, and
  • while stocks were very familiar to 65% of men,
  • they were familiar to only 50% of women surveyed

The 2001 Nationwide Financial High Income Survey questioned 500 people younger than age 60 with annual incomes greater than $150,000 per year.

– Camilla Klein              editors@plansponsor.com

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