The traditional behaviors that have often held women back in investing and saving are repeating themselves for millennals, according to a survey released Thursday by PNC Investments.
Young women are still more risk averse, more skeptical of alternative investments and not saving as much as their male counterparts, the same traits that can be found in older women. according to the survey.
The study found men have greater appetites for higher-risk investments. Fourteen percent of millennial men report that they embrace risk—double the number of female millennials reporting similar sentiment. The study included people age 21 to 35 with self-reported investable assets of $5,000 or more or those who have a qualified retirement plan and at least $1,000 in investable assets.
“One of the foundational aspects of any financial plan is to determine your overall risk tolerance, and for members of the younger generation, risk can be healthy,” Rich Ramassini, senior vice president and director of strategy and sales performance for PNC Investments, said in a statement. “People’s appetite for risk is often not on par with how much risk they can actually handle for their age.”
More female millennials than male millennials admit they are not confident in their financial management skills and men are more likely to rely on themselves and knowledge they attain through media and internet sources. Male millennials are twice as likely as their female cohorts to consume content from recognized national media outlets, PNC said.
Young women also are falling behind in savings. Forty-six percent of female millennials contribute 6 percent or more of their income toward retirement, compared to 57 percent of male millennials, the survey found. Twenty-nine percent of female millennials report having between $1,000 and $9,999 in investable assets, compared to 17 percent of men. At the same time, 46 percent of male millennials report having $50,000 or more in investable assets, whereas only 32 percent of female millennials report the same.
Female millennials report having saved an average of $66,700 for retirement compared to the $101,500 for male millennials, and 19 percent of female millennials and 36 percent of male millennials say they have a solid understanding of how to successfully invest their money.
Approximately eight out of 10 millennials say they have full-time jobs, but only 32 percent of women and 43 percent of men say they feel in control of their financial well-being, and even fewer are confident they are saving enough for the future (26 percent of women compared with 40 percent of men).
“It’s critical that both female and male millennials take actionable steps—including making concerted efforts to save for retirement, participating in the markets and building a solid emergency fund—to ensure their future is not in jeopardy,” Ramassini added. “Given the findings of this survey, we encourage millennials to seek assistance from qualified financial advisors who can help make sure they are on the path to securing a strong financial future.”