Gender Differences in Risk Aversion and Expected Retirement Benefits

Posted: 2 Aug 2007

See all articles by John Watson

John Watson

The University of Western Australia

Mark McNaughton

KordaMentha

Abstract

Women are generally considered more risk averse than men. Controlling for age, income, and education, this study examined the impact of gender on the superannuation (retirement) fund risk preferences of staff in the Australian university sector. The findings suggest that women choose more conservative investment strategies than men and that lower income (which affects the amount members contribute to their superannuation funds) is the primary contributor to the lower projected retirement benefits of women. Providing members with a choice among risk levels in their retirement investments should significantly benefit male and female retirees.

Keywords: Private Wealth Management: Asset Allocation, Client Objectives, Constraints, and Behavior

Suggested Citation

Watson, John and McNaughton, Mark, Gender Differences in Risk Aversion and Expected Retirement Benefits. Financial Analysts Journal, Vol. 63, No. 4, pp. 52-62, July/August 2007. Available at SSRN: https://ssrn.com/abstract=1002993

John Watson (Contact Author)

The University of Western Australia ( email )

35 Stirling Highway
Crawley, Western Australia 6009
Australia

Mark McNaughton

KordaMentha

Level 11, 37 St Georges Terrace
Perth 6000
Australia

Register to save articles to
your library

Register

Paper statistics

Abstract Views
1,235
PlumX Metrics