Financial planning is a crucial aspect of life for everyone, regardless of gender.
However, men and women often receive different financial advice throughout their lives, reflecting broader societal norms, expectations, and economic realities.
Understanding these differences is essential for ensuring that both men and women are empowered to make informed decisions about their financial futures.
To comprehend the differences in financial advice given to men and women, it is important to understand the historical context.
Traditionally, men were seen as the primary breadwinners, responsible for earning and managing money, while women were expected to focus on homemaking and child-rearing.
This division of roles meant that financial advice for men often centred on wealth accumulation, investment strategies, and retirement planning.
In contrast, women were often guided toward budgeting, household management, and savings.
Although these roles have evolved significantly in modern times, remnants of the traditional expectations still influence the financial advice men and women receive today.
Women now form half the workforce, achieving higher education, and taking on leadership roles in various industries.
Despite these advancements, gender-based disparities in financial guidance persist.
Reasons for differing advice
One of the primary reasons for differing financial advice is the variation in goals and priorities between men and women.
Studies have shown that men are generally more focused on wealth accumulation and investment growth.
They tend to be more comfortable taking risks in pursuit of higher returns.
Consequently, financial advice given to men often emphasises aggressive investment strategies, portfolio diversification, and maximising retirement savings.
On the other hand, women often prioritise financial security and stability. They are more likely to seek advice on how to ensure long-term financial well-being and protect their assets.
As a result, the financial guidance provided to women, if any at all, frequently emphasises insuring for emergencies and planning for life events such as marriage, children, and retirement.
Another significant factor contributing to the differences in financial advice is the income disparity between men and women.
Despite progress in closing the gender pay gap, women, on average, still earn less than men for the same work.
This is because women’s career trajectories also tend to differ from men’s, often due to factors such as maternity leave, caregiving responsibilities, and part-time work.
These breaks can lead to gaps in income, retirement savings, and career advancement opportunities.
Financial advisers may, therefore, recommend different strategies for women to account for these interruptions, such as focusing on building a solid emergency fund, maximising retirement contributions when possible, and considering insurance options to protect against income loss.
Women, on average, live longer than men, which has significant implications for retirement planning.
Because of their longer life expectancy, women often require more substantial retirement savings to ensure they do not outlive their resources.
