NEW YORK--(BUSINESS WIRE)--
Women around the world today are more concerned than men are
about immediate financial needs and concerns -- and are more likely than
men to overlook longer-term financial priorities such as planning
effectively for their retirement, according to the first-ever Global
Investor Pulse Survey recently conducted by BlackRock (BLK: NYSE).
The survey, which polled more than 17,500 respondents in 12 nations
including almost 9,000 women globally, is one of the largest surveys
ever of its kind.
Women are more likely than men to emphasize strengthening day-to-day
financial security via saving and debt reduction. When asked what they
would do if they earned an extra $200 (or the equivalent) more per
month, women globally were more inclined than men to say they would save
more generally (45% vs. 38%) and pay off debt (28% vs. 23%) – as well as
spend more on their children (15% vs. 11%).
At the same time, in most parts of the world, women (52%) are less
likely than men (59%) to say they have begun to save for retirement.
In the U.S., both men and women prioritize retirement: 47% of men and
46% of women name “funding a comfortable retirement” as a currently
important financial goal. But, while 55% of American men say they
understand how much they need to save for retirement, only 45% of
American women do. Just 53% of women say they have begun to save for
retirement, compared with 62% of men.
Women Marked by "Sober" Financial Perspective
Worldwide, women are significantly more likely than men to choose a
negative word (such as “nervous,” “pessimistic,” “frustrated,” and
“concerned”) to describe their financial future (52% vs. 43%).
“Simply put, when it comes to money, women and men today see the world
quite differently,” said Sue Thompson, Managing Director and Head of the
Institutional Asset Management and RIA Channel at BlackRock. “Women have
a profoundly sober financial perspective, apparently more influenced
than men by the realities of today’s market volatility and ongoing
economic uncertainty. They place greater emphasis than men on day-to-day
financial planning and maintaining the household balance sheet -- but
this focus also seems to undercut engagement around longer-horizon
activities such as retirement planning as well as investment."
“Women seem highly realistic about the financial state of both the world
and their own households. The research we’ve conducted with investors
indicates that women’s more cautious stance yields healthy financial
priorities, including urgency regarding saving and paying off debt,”
said Anne Ackerley, BlackRock’s Chief Marketing Officer and co-chair of
BlackRock’s Women’s Initiative Network. “At the same time, a confidence
differential suggests that women still lack a sense of financial
empowerment in certain key areas.”
Concern and Caution Drive Women’s Views of Money and Investing
Globally
Around the world, women's financial conservatism is apparent in a far
more cautious stance with their money as well as a wary stance toward
risk.
More than half (55%) of women globally (compared with 47% of men) agree
that “I am not willing to take any risks with my money,” and just 22% of
women globally (compared with 34% of men) say they are willing to take
on higher risks to achieve higher rewards.
Only 21% of women worldwide say they are comfortable investing in the
stock market (compared with 33% of men).
Globally, Women Favor Financial Consolidation, Maintenance; Less
Confident About Financial Decision-Making
The BlackRock poll shows that women view threats to household financial
maintenance and sustainability more seriously than men do.
When asked to pick top threats to their financial futures, women are
more inclined than men to name job security (31% vs. 25%) and having to
spend more than they earned (35% vs. 27%).
Consistent with such concerns, women are more likely than men to cite
the following as priorities: paying off the mortgage on their main home
(30% of women vs. 26% of men), paying off other debts (49% vs. 42%),
saving a deposit for a new home (15% vs. 11%), and financing their
children’s education (21% vs. 18%).
“Globally, women’s financial worldview is differentiated by not only
specific priorities and concerns, but also generally lower financial
confidence levels,” said Ms. Ackerley. Only 15% of women globally
(compared with 20% of men) say they feel “completely confident” about
making the right savings and investment decisions.
Women are also less confident than men about their ability to achieve
key financial priorities, including growing their wealth (66% of men vs.
55% of women are confident), preserving their wealth (71% vs. 62%),
drawing an income from their savings/investments (69% vs. 60%), funding
a comfortable retirement (65% vs. 52%), and paying for long-term care
for themselves and/or their partner (59% vs. 43%).
"Engagement Gap" Looms Wide in the U.S.
In the United States, women clearly lag behind men in knowledge and use
of some basic financial principles and products.
Compared with American men, American women are less knowledgeable and
express less interest in saving and investing. Only 41% of U.S. women
identify themselves as knowledgeable about saving and investing,
compared with 57% of U.S. men.
U.S. women also lag behind U.S. men when it comes to financial
engagement and autonomy. Only 48% of U.S. women report that they
regularly monitor the performance of their savings and investments,
while 59% of U.S. men do. And while 58% of U.S. men indicate that they
feel comfortable making their own investment decisions, a mere 41% of
U.S. women do.
Gender Disparities Less Evident Along the Pacific Rim
Along the Pacific Rim, women generally are more financially confident
and empowered, and more closely aligned with men than their peers
globally, BlackRock’s survey reveals.
Survey respondents in Taiwan and Hong Kong are more optimistic about
their financial futures – with more unanimity between genders – than
respondents elsewhere. More than half of Taiwanese men (57%) and
Taiwanese women (55%) – as well as 67% of Hong Kong men and 62% of Hong
Kong women – chose a positive word to describe their financial future.
When asked if they had started to save for retirement, men’s and women’s
responses were more closely aligned in Hong Kong and Taiwan than
anywhere else.
“The ‘gender story’ on the Pacific Rim shows that the differences that
seem to set women and men apart in their money lives are not a foregone
conclusion,” said Ms. Thompson. “With deeper understanding of the
importance of balancing financial risk and opportunity as well as use of
appropriate investment products, women can derive even more benefit from
their sound money instincts – and sustain better progress toward their
long-term financial goals, including a financially secure retirement.”
BlackRock’s Global Investor Pulse Survey, which polled 17,500 investors
including 4,000 Americans in 2013, is one of the largest ever of its
kind. The global survey sample included 8,984 women and 8,583 men; in
the US, 2,074 women and 1,926 men were surveyed. For more information
about the survey and its methodology, please see www.blackrock.com/investorpulse.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
December 31, 2013, BlackRock’s AUM was $4.324 trillion. BlackRock helps
clients meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of December 31, 2013,
the firm had approximately 11,400 employees in more than 30 countries
and a major presence in key global markets, including North and South
America, Europe, Asia, Australia and the Middle East and Africa. For
additional information, please visit the Company’s website at www.blackrock.com.
About the Poll
One of the largest global surveys ever conducted, the BlackRock Global
Investor Pulse poll interviewed 17,567 respondents, in 12 nations: the
US, Canada, the UK, Germany, France, Italy, the Netherlands, Belgium,
Switzerland, Australia, Hong Kong and Taiwan. The US sample totaled
4,000 respondents. No income or asset qualifications were used in
selecting the poll's participants, making the survey a truly
representative sampling of each nation's entire population. Executed
with the support of Cicero Research, the survey took place from Aug. 24
to Sept. 16. For both the global sample and the US sample of 4,000
respondents, the margin of error is +/- 3%.
The opinions expressed are as of March 4, 2014 and may change as
subsequent conditions vary.
BlackRock® is a registered trademark of BlackRock, Inc. All other
trademarks are the property of their respective owners.
© 2014 BlackRock, Inc. All rights reserved. BLK-1423
BlackRock
Katherine Ewert, 1-212-810-5204
katherine.ewert@blackrock.com
Source: BlackRock