High Costs of Financial Advice Hinder Women's Investment Confidence

1

The findings underscore another concern: women remain more wary of investment fees, with 61 per cent expressing concern compared to 55 per cent of men. According to Lauren Jackson from Fidelity International, these financial apprehensions are compounded by broader economic pressures, as a significant number of women are already reducing non-essential expenditures to cope with the rising cost of living.

The research indicates that even though women are less proactive in seeking advice, they recognize the importance of financial management. However, despite this awareness, women exhibit lower confidence in achieving long-term financial goals and managing day-to-day finances compared to their male counterparts. Only 13 per cent of women feel confident about meeting financial objectives, versus 22 per cent of men.

Diving deeper, the study notes a confidence gap in evaluating investment opportunities. Just 48 per cent of women feel assured in assessing investments, while 72 per cent of men display such confidence. Additionally, the disparity extends to investment actions, as 24 per cent of women have never invested compared to 10 per cent of men. Women are also less inclined to invest in shares, bonds, or pursue diversification.

Significantly, women prioritize seeking trustworthy financial advice, with 43 per cent expressing concerns over finding reliable consultants. Moreover, they desire advisors who can communicate at an understandable level, with 25 per cent highlighting this need in comparison to 19 per cent of men.

Interestingly, women diverge in their sources of financial guidance. They are more likely to turn to financial news sites (34 per cent) and personal acquaintances (33 per cent) for advice, rather than social media "finfluencers." In contrast, men show a higher inclination towards investment apps.

Promisingly, younger generations, particularly Gen Z, exhibit a growing interest in financial guidance. Half find the prospect of financial advice appealing, suggesting a potential cultural shift that could encourage more women to seek advice, thus bolstering their investment confidence.

Published:Monday, 10th Mar 2025
Source: Paige Estritori

Share this news item:

Finance News

Clear

Calls Intensify for Swift Financial Advice Reforms in Australia 06 May 2025: Paige Estritori Amid pressing concerns from industry associations, the call for rapid finalization of financial advice reforms in Australia has been amplified. The lack of direction from the Labour government regarding the Compensation Scheme of Last Resort (CSLR) is causing uncertainty in the sector, potentially stalling essential reform work. The impending retirement of Stephen Jones has only added to the speculation surrounding the future of these reforms. - read more

Unlocking Income Opportunities Through Commercial Real Estate Debt 06 May 2025: Paige Estritori Investors are increasingly discovering income prospects in commercial real estate (CRE) without owning property directly. CRE debt investments offer a popular method to generate returns by lending to those requiring capital for commercial property ventures. The investors' gains are derived from borrowing costs, encompassing interest and fees, once fund expenses are deducted. - read more

Navigating the Challenges of Bond Income Distributions 05 May 2025: Paige Estritori As global bond yields experience a resurgence, many income-seeking investors face diminishing returns from cash distributions. According to a recent analysis by investment researcher Zenith, a noticeable discrepancy has emerged between the average yields of bond fund portfolios and their actual income distributions. - read more

Westpac Records Slight Profit Drop Amid Geopolitical Risk Concerns 05 May 2025: Paige Estritori In a cautious signal to the market, Westpac has recorded a marginal decline in its half-year profit, posting a $3.45 billion result, down by one per cent compared to previous figures. This financial outcome marks the first under the direction of their new CEO, Anthony Miller, who commenced his role in December last year. Westpac has flagged geopolitical unpredictability as a significant ongoing risk, reflecting a challenging environment for the financial sector. - read more

US Federal Reserve Rate Decision Grips Australian Investors 04 May 2025: Paige Estritori The upcoming interest rate decision by the US Federal Reserve is creating significant anticipation among Australian investors. As the announcement is set for Thursday, the market is particularly keen on understanding the future direction beyond the expected maintenance of the current cash rate, which Federal Reserve Chair Jerome Powell has previously indicated for May. - read more

Court Imposes $11 Million Penalty on Advice Firm for Breaching Remuneration Rules 02 May 2025: Paige Estritori The Federal Court has imposed a substantial $11 million penalty on a financial advice firm after discovering the firm breached conflicted remuneration regulations. The case revealed that DOD Bookkeeping, formerly Equiti Financial Services, engaged in practices that involved providing standardized advice that improperly favored in-house property investments. - read more

Strategic Analytics Appointment Boosts La Trobe's Growth Ambitions 30 Apr 2025: Paige Estritori La Trobe Financial is intensifying its focus on strategic growth with the appointment of Himanshu Yadav as the new Head of Strategic Analytics and Projects. This move aligns with the company's ambitious goal of reaching $30 billion in assets under management, marking a significant milestone in its expansion strategy. - read more