When it comes to RSP investing, there are significant differences between the sexes in terms of risk tolerance, expected rates of return, expectations of how much is needed to retire comfortably, according to TD Waterhouse’s 2004 RSP Investor Poll.

When asked what type of investor they consider themselves to be, 54% of female respondents classify themselves as low-risk investors vs. 45% for men. Whereas 54% of men say they are either medium- or high-risk investors, only 41% of women do so.

Commensurate with investing more conservatively, women also expect lower rates of return. More than twice as many men than women (20% vs. 9%) expect to earn between 8-10% from their RSPs this year. Overall, the average expected rate of return for women was 7% compared with 10% for men.

“The results of our recent poll are very consistent with those of a wider survey on investment attitudes among Canadian women we conducted in November 2002,” said Patricia Lovett-Reid, senior VP, TD Waterhouse Canada Inc. “The two studies demonstrate that while women have come a long way in planning their financial futures, many still lack confidence, feel that they lack investment knowledge and consider themselves low-risk investors.”

“The good news is that more women are buying RSPs,” added Lovett-Reid. “The trend for 2003 is slightly up — 54% versus 52% last year — whereas the trend for men is slightly down — 58% this year versus 61% last year.”

The poll found a marked difference in what the sexes think they will need to save for a comfortable retirement — $399,000 for women vs. $623,000 for men. “This is cause for real concern,” said Lovett-Reid. “When you factor in longer life spans, rising costs of living, divorce rates, an aging population and strains on health care costs, it is clear that women are aiming far too low for retirement.”

A smaller proportion of women (35%) than men (47%) have ever tried to calculate the amount they need for retirement. Interestingly, RSP investors (men and women) who have made this calculation provide a more realistic assessment of $663,000 as the amount they need to retire comfortably.


Other poll findings are that

  • 37% of male respondents plan on including a stock-based mutual fund in their RSP portfolio vs. 24% of female respondents;
  • 24% of men will include stocks in their portfolios vs. 17% of women;
  • Significantly more women than men (44% vs. 36%) are relying on the Canada Pension Plan or Quebec Pension Plan and Old Age Security payments to fund their retirement; and 33% of men manage their own investments without any professional advice vs. 25% of women who do so; and
  • 45% of women are very satisfied with the investment advice they receive vs. 39% of men.

A total of 1,063 telephone interviews were conducted among a nationally representative random sample of Canadians aged 18 to 69; of whom 750 currently have an RSP or plan to open an RSP account for 2003. The survey results are accurate within plus or minus 3.6 percentage points, 19 times out of 20.