The financial situation of women is significantly more strained; nevertheless, financial advisors often recommend more expensive investment products, as shown in a new infographic from Block-Builders.de.
About 8% of women describe their economic situation as very good. Among men, however, this figure is 13%. There are significant differences between the genders in many financial aspects:
- For example, significantly more men own securities than women.
- Only one in two women feels financially secure – a necessity for looking confidently into the future. Among men, this proportion is 75% (data source: Allianz Women, Money and Power Study, 2023).
Women are offered more expensive products from advisors
Given this situation, it would be desirable for women to place more emphasis on high returns when investing and to be supported by their advisors. However, as the infographic shows, this does not seem to be the case. Survey data indicate that women are recommended more expensive investment products on average by financial advisors (both male and female). Financial professionals appear to assume lower financial literacy and less price sensitivity among their female clients compared to their male clients. Therefore, men more frequently receive discounts on sales fees and are less often recommended expensive, in-house bank funds. Whether this discrimination is conscious or unconscious is not revealed by the study.
Women more often follow their advisors' recommendations
This is doubly consequential, as women more often follow the recommendations of banks or investment advisors. Specifically, 63.8% of women follow expert recommendations, whereas the proportion among men is slightly lower at 60.4%.
However, it is also evident that while women invest less frequently, they are often more successful when they do. This is likely not related to the products specifically recommended to them; rather, it is probably a result of women taking overall lower risks and diversifying their capital more broadly than men.
Regarding ESG investments, women have invested 30% more in sustainable investments than men (data source: Fidelity Investments Annual Report, 2023).
The conclusion should therefore be: Be vigilant when receiving financial investment advice and ask for good terms!
Here is the full article with more graphics.
Anke Dembowski is a financial journalist and author of various investment fund-related and other financial books. She is also a co-founder of the "Fondsfrauen" network.