The difference between the sexes is still a predominant theme when it comes to RSP investing, according to a recent TD Waterhouse RSP Poll.
The poll found that almost the same proportion of men and women own RSPs at 79% vs. 77%, but that is where the similarity ends.
When it comes to types of investments, investing habits, use of advice, expectations for returns and concerns about retirement, successive TD Waterhouse polls have demonstrated that – relative to men – women are more cautious RSP investors, have more worries about maintaining their living standard and access to healthcare in retirement, find investing itself to be more stressful, and feel they don’t know how much they need to retire comfortably.
As well, women are also more likely than men to rely on — and be satisfied with — professional financial advice, and to make monthly rather than lump sum contributions to their RSPs.
The poll found that:
- On average, women plan to contribute only 56% of what men will contribute to their RSPs this year ($3450 vs. $6130).
- Men are significantly more likely than women to own stocks (40% vs. 33%), mutual funds (59% vs. 52%) and income trusts (12% vs. 6%).
- Fewer women than men feel extremely or very knowledgeable about investing (12% vs. 18%). More than half of women (57%) don’t know how much they will need to retire (vs. 42% of men), and fewer women have calculated what they will need (41% vs. 47%).
- Women also feel they need considerably less of a retirement nest-egg than men -$627,000 vs. $797,000. However, this is markedly higher than what was reported in last year’s poll ($399,000 for women, $623,000 for men).
“Add it all up and the retirement picture for women continues to be notably bleaker than for men,” says Patricia Lovett-Reid, senior vp, TD Waterhouse Canada Inc. “The gender differences are both large and persistent year after year.
“While women are closing the gap with men when it comes to assessing the size of the retirement nest-egg they will need, I am still concerned about how they are going to achieve their objectives,” continues Lovett-Reid. “Our poll shows that women plan to contribute considerably less than men this year, and the gap seems to be widening over previous years.”