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Source: Photos.com
Men and women are making different choices about their retirement savings, a banking researcher says.
Dr Claire Matthews, the director of financial planning at Massey University's Centre for Banking Studies, said men are more likely to invest in aggressive growth funds while women are more likely to take the conservative option.
"When it comes to long-term savings, risk taking can actually be an advantage", said Matthews.
She also found, in her report based on the survey KiwiSaver and Retirement Savings , men are more likely to have savings put away.
More than half of the males surveyed said they had savings already, whereas only 38% of women did.
"These figures reflect and confirm, quite disappointingly, the difference between males and females and the level of interest they take in financial planning," Matthews said.
"It's important for all New Zealanders to be better educated about their personal finances, but this is particularly so for women."
The age, education and income factors
Matthews found people with bachelor and higher degrees were more likely to choose aggressive growth funds, and families that earn more than $100,000 a year also took the more risky option.
However, the youngest and oldest age groups are more likely to invest in conservative funds.
"Younger investors are either staying in default funds allocated by their provider, or lack the knowledge and confidence to invest more aggressively" said Matthews.
She said it is important for different groups of people to be informed in different ways.
"KiwiSaver is not a 'one size fits all' option, and it is important to manage its promotion and its structure to meet the varied needs of the population", said Matthews.
Matthews advises all investors to get advice about the best choices for their individual circumstances.
