Women are less likely to invest than men and are more risk-averse, which often leads them to choose lower-risk and, consequently, less profitable investment options.
This is one of the findings of an Ipsos survey conducted for ING with a representative sample of 1,008 Belgians at the end of 2024.
It shows that 50% of men have some household savings invested, compared to 40% of women.
Men tend to take more risks
Men tend to be more optimistic about their investments and take more risks than women, according to the researchers.
The study also notes a difference in risk perception between genders: 42% of women agree that “the stock market is like a casino, pure gambling, and putting my savings at risk,” as against 27% of men.
“This difference in risk aversion has a significant impact on the investment strategies chosen for managing wealth,” says the study's author, Charlotte De Montpellier, a senior economist at ING. “Women tend to favour lower-risk investments that ultimately yield lower returns.”
Risk aversion is coupled with a greater tendency among women to fear the “complexity” of investments (77% compared to 70% of men).
Women seek protection in savings, men prefer stocks
Many feel they do not sufficiently understand financial mechanisms (75% as against 59% of men), the study notes.
This leads to differing financial decisions, with more women considering savings accounts as good protection against the negative effects of inflation, while more men prefer investing in stocks to shield their wealth from inflation.
“In a world where inflation is set to remain higher than in the past, letting savings ‘sleep’ in savings accounts, current accounts, or as cash results in impoverishment," De Montpellier concludes. "Consequently, since women are less inclined to invest, they are more likely to have experienced wealth depletion due to inflation in recent years.
"This contributes to a wealth gap between men and women that persists and may widen over time.”
