Adviser’s overuse of financial jargon, a lack of confidence, and an increased perception of risk have led to a disparity in the uptake of investment advice between men and women, research from HSBC shows.
The HSBC data shows women are more likely to think their friends and family do not want to talk about investing, and would not encourage it for their current life stage or lifestyle than men.
Women also find financial jargon more off-putting than men with more than a third of females (35 per cent) saying they felt like this compared with a quarter (26 per cent) of men.
The HSBC report into investment advice found women are generally less confident than men when it comes to the investment process, despite having equal necessary investment knowledge.
The research found a lack of time is also a barrier to women investing, with 17 per cent of women spending more than a month researching investment options, compared to 13 per cent of men.
Nearly three quarters (72 per cent) of women say they do not want to take investment risks, compared with 54 per cent of men.
HSBC head of premier and wealth insights Michelle Andrews says: “While gender does not define the way we manage our money, there are subtle but notable factors that may put some women off investing.”
“Unlocking the investment potential of female customers will not only benefit UK society as a whole, allowing women to invest more easily and with more confidence to deliver multiple economic and social benefits for the UK, but it will also benefit the bank commercially.”
HSBC worked with YouGov to speak to 2000 UK investors, as well as conducting customer interviews and speaking to its own staff.