Gender Gap in Savings Goal Choice: Evidence from Mixed Methods

35 Pages Posted: 6 Nov 2019

See all articles by Ariane Hillig

Ariane Hillig

University of London - Goldsmiths College

Jerome Monne

The Open University Business School

Janette Rutterford

The Open University - Business School

Dimitris Sotiropoulos

The Open University

Date Written: July 30, 2019

Abstract

There has been a good deal of research on gender psychological differences in the context of financial decision making, but no research on the impact of gender difference in the setting of savings goals. To address this question we use two unique datasets, one quantitative and one qualitative. Our quantitative results show that men set more challenging savings goals than women, even when we control for wealth, income, and portfolio risk taking. Our qualitative results corroborate these findings. Women are more likely to be content with targeting a comfortable life in retirement, setting an unambitious savings targets. They also tend to be more concerned than men by eventual possible future impediments to saving, such as adverse income shocks. This causes them to focus more on the accessibility of their savings which implies that they are more likely to anticipate that they will have to reduce savings in the future. In contrast, men seem less concerned about possible future barriers to saving money. They are also more committed to saving and to wealth accumulation.

Keywords: Savings goal, Gender gap, Commitment to save, Consumers’ behaviour, Mixed methods, Gender gap in wealth

JEL Classification: G40, D14, J16

Suggested Citation

Hillig, Ariane and Monne, Jerome and Rutterford, Janette Marie and Sotiropoulos, Dimitris, Gender Gap in Savings Goal Choice: Evidence from Mixed Methods (July 30, 2019). Available at SSRN: https://ssrn.com/abstract=3429191 or http://dx.doi.org/10.2139/ssrn.3429191

Ariane Hillig

University of London - Goldsmiths College ( email )

Lewisham Way
New Cross, SE14 6NW
United Kingdom

Jerome Monne (Contact Author)

The Open University Business School ( email )

Milton Keynes, MK6 7AA
United Kingdom

Janette Marie Rutterford

The Open University - Business School ( email )

Walton Hall
Milton Keynes, MK6 7AA
United Kingdom
00441908655812 (Phone)
00441908655898 (Fax)

Dimitris Sotiropoulos

The Open University ( email )

Walton Hall
Milton Keynes, MK6 7AA
United Kingdom

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