Women care more than men about having a financial advisor who speaks to them in plain language and shows them respect, but the top priority among both genders is making good investment returns, a report from the Canadian Investment Regulatory Organization (CIRO) has revealed.
The report is based on an online survey conducted in April by Innovative Research Group Inc. and Lucid, an online polling firm. The survey involved 3,154 Canadian adults, including an oversample of 2,041 women, and it was weighted to be more representative of the general adult and women populations in Canada.
The poll found that women were more likely than men (56% vs. 40%) to place importance on an advisor speaking to them without jargon, showing respect (56% vs. 47%), and showing an understanding of their life goals (52% vs. 40%).
However, for both genders, achieving good investment returns was the top priority, with 54% of women identifying this as a priority and 60% of men doing so.
“This research underscores the importance of recognizing women investors and their unique needs — and provides insights into how the investment industry can meet those needs,” said Dorothy Sanford, chairperson of CIRO’s Investor Advisory Panel, in a release.
“By better understanding their experiences, motivations and barriers, we can help shape a more inclusive investment environment — one that supports confidence, access and long-term financial well-being for all Canadian investors.”
The survey also found that most men and women (79%) had no preference on their advisor’s gender. At the same time, women were found to be twice as likely to work with a female finance advisor as male respondents (41% vs. 21%).
Respondents were asked about negative experiences with advisors too.
While neither gender reported having negative experiences more often than the other, the survey revealed that first-generation Canadian women felt they were treated differently by advisors than their partner more often (38%) than first-generation Canadian men (24%).
Also, women who took responsibility for the finances in a couple were more likely to report experiences of their advisor not listening to them or treating them differently than their partner.
Investing and saving views, habits
The research further highlighted how the two genders approach and view investing and saving.
For one, it found that 43% of women identified as investors, compared with 56% of men.
As well, it showed that 41% of women save at least $5,000 per year, while 52% of men do.
The gaps in saving and investing were largest between men and women making less than $60,000. But once people made more than $100,000 in income, that gap closed, the report noted.
Confidence in investing, risk-taking behaviours
Women were also found to be less confident and more risk averse in investing.
Nearly half (47%) reported feeling confident about investing, while two-thirds (66%) of men did.
And 22% of women said they didn’t know where to start, compared with 12% of men.
Among women who do invest, a lower risk tolerance was apparent.
Twenty-seven per cent of women reported having a very low risk tolerance, while 34% said they have a low risk tolerance. By comparison, 16% of men said they had a very low risk tolerance and 29% had a low risk tolerance.
Among non-investors, “the most common reason for not investing is feeling they don’t have enough money to invest,” the report said.
Meanwhile, among younger non-investors, women were more likely to say they didn’t know where to start or that they felt a need to pay down debt first, the research found.