A study by the worldwide research, consulting and professional development organisation, LIMRA, that compared the financial approaches of men and women, has found that there are key differences between the two sexes in both their methods of financial planning and in their decision-making processes.
When it comes to sharing financial decisions, over two thirds of the female respondents said they shared the responsibility to come to a decision with their spouse, compared to just 46% of men. However, whilst only three out of ten women were the main financial decision-maker in homes worth more than $1 million US (around £700,000), when they hold that position they are more likely to have carried out basic planning for retirement. This includes outlining retirement expenses, calculating how long their financial assets will last and creating a strategy to allow their savings to generate a flow of income when they do retire.
Whilst this may make it seem like women came out better than men overall, there were two areas in which the male respondents came out on top. Men were more likely to determine their future retirement income, and they were also considerably more likely to have calculated how much of their investment income and assets they would be able to spend during their retirement.
A separate study suggests that, after the death of their spouse, 70% of women choose to move to a different financial adviser due to not having been able to build trust with their current adviser. The overall message from both surveys is that it’s far better for spouses to cooperate than keep one another in the dark about financial decisions. Men and women generally have different financial strengths that complement each other well. Coming up with a retirement plan together is likely to result in greater satisfaction with your financial adviser, as well as increasing your confidence in your own financial plans.