Aussie women aged 35-49 “behave like retirees” in terms of risk appetite

Monday 27 October 2014

Article by Rebeccah Elley

The latest research by Colonial First State Global Asset Management showed Gen X women are lagging behind Gen Y women when it comes to their preference for investing in equities.

Colonial First State Global Asset Management Gen X research

CFSGAM senior analyst Belinda Allen said the gap between preference for equities for Gen X women and Gen Y women is larger than it should be. “Gen Y women are investing more appropriately for their age group than Gen X women, who are behaving more like retirees in terms of risk appetite.”

Allen said this could be problematic in the long-term, “as most Gen X women are in their prime accumulation phase, and should be considering investing in more high growth assets.”

By comparison, investment in equities is higher than ever for Gen Y men and women. Women under 35 now have a higher preference for equities than men, at 1300 points for women versus 953 for men over the period. Allen suggested this is something Gen X women may want to consider.

While Gen X women “behave like retirees” in terms of risk appetite, they have begun increasing their preference for equities overall.

“We have seen some early signs of a turnaround in investment in equities for Gen X women, who have been more responsive than males in taking advantage of changes in market conditions and events during 2013 and into 2014 across all age groups."

“These women may finally be heeding the message to save more, save earlier and invest in higher growth assets,” Allen said.

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