Behavioral gender differences in financial investing and their consequences for women in old age

Abstract

Due to changes in the economy and Swiss pension challenges, it's vital to invest beyond legal requirements for sufficient assets in old age. Especially for women with longer life expectancy, lower salaries etc., capital investments can narrow the financial gender gap and secure their retirement. However, women's investing behavior differs from men's, leading to less wealth accumulation. My paper explores three gender differences in investing: risk tolerance, confidence, and financial literacy, while focusing on financial literacy’s impact on investment rates and risk tolerance.