Women are demonstrating higher levels of financial literacy compared to men, a report by the Financial Services Council (FSC) has revealed.
The Financial Services Council (FSC) released its latest “Insights & Trends: Women and Finance in New Zealand” report, which highlights that two-thirds of women (66%) answered at least three financial literacy questions correctly, showing their understanding of important concepts like investment strategies and diversifying risk, while only 57% of men achieved the same.
The report further indicates that women, while typically more conservative in their investment choices, tend to see greater long-term success. This is attributed to their careful strategies and emphasis on securing their financial future.
According to the research, women are more inclined to spread their investments across different assets, steer clear of risky gambles, and stick with financial plans designed for the long haul. This approach has historically proven to generate more reliable and robust investment returns.
“The data is clear—women are better investors than they think they are,” FSC chief executive Kirk Hope said.
“We need to shift the narrative from perceived lack of confidence to recognising women’s strengths in financial decision-making.”
Despite this financial acumen, over 80% of women still have a negative view of their financial health. A large majority (78%) are either seeking or already getting professional financial advice.
They also tend to be less content with their financial circumstances, with the FSC report showing that only 42% of women are in high financial satisfaction, suggesting that many may be in a financially vulnerable position.
Gender Pay Gap
The research has also shown that the gender pay gap and career breaks contribute to decreased lifetime earnings for women, resulting in a 25% difference in KiwiSaver retirement savings between men and women.
This disparity is reflected in retirement preparedness: 58% of women feel unprepared for retirement, a higher percentage than their male counterparts.
“The current KiwiSaver settings disadvantage those who take career breaks, disproportionately affecting women who pause their earnings to care for or start their families,” Hope stated.
“It is evident that strategic policy changes can lay the groundwork for transformative, long-term benefits, ensuring greater financial security for generations of New Zealand women.”
The Financial Services Council (FSC) released their “Insights & Trends: Women and Finance in New Zealand” report to promote International Women’s Day 2025 and its theme of inspiring a better, more inclusive world for women. The report seeks to provide a better understanding of the relationship between women and finance.