Industry must do more to improve women's financial literacy: Fidelity

While women are increasingly aware of the importance of their financial wellbeing, only 16% have sought financial advice to achieve their goals.

Fidelity's Next Generation research surveyed over 1000 Australian consumers aged 18 to 59 years old, highlighting the gap between the two genders in financial literacy.

Only 13% of women believe they will achieve their long-term financial goals, compared to 22% of men, while 18% of women are very confident in their ability to manage their day-to-day finances and their big picture finances, compared to 28% on men.

The disparity also extends to each gender's ability to evaluate investment opportunities, only one in two women (48%) believe they can achieve so, comparing to 72% men that are confident, but it is prudential to understand that the confidence does not necessarily translate into successful investments.

Further, one in four women (24%) say they have never invested at all, compared to 90% of men who have invested. Women (22%) are also less likely to invest in shares or bonds than men (31%) and they are less likely to consolidate debts and diversify their investments.

Fidelity International head of wholesale, Australia Lauren Jackson said more needs to be done to improve financial understanding in Australians, particularly women.

"Women recognise how important it is to be financially aware and to manage their financial situation. We are seeing people becoming more vocal about addressing issues such as longevity, and how women can contribute more to their superannuation. This is positive progress," Jackson said.

"However, what we should tackle next is the gap in the confidence and faith that women have about their own ability to manage their financial situation when compared to men, as this will have a knock-on effect on the decisions that women make about investments and managing money."

Jackson said the impact of the discrepancy between genders is significant, especially in the current economic climate.

"Cost-of-living pressures are being felt very keenly by women, with three quarters of women saying they have reduced spending on non-essentials compared to 60% of men. This could create another barrier to their willingness to invest," Jackson asserted.

"Our report highlighted the increasing interest among younger generations in seeking financial advice, with one in two 'Gen Z' respondents finding financial advice appealing or very appealing.

Jackson believes financial institutions have responsibility to support women in achieving financial equality and helping to shift perceptions.

"This is particularly important as our research found that women are less likely to seek out professional financial advice than men," Jackson added.

"It is clear that more needs to be done to improve financial understanding amongst all Australians but in particular women, in light of their longer lifespans and lower superannuation balances."

Interestingly, women are less likely to turn to social media finfluencers for advice, with just over one-quarter of women (28%) saying they use finfluencers for financial information compared to 36% of men.

Instead, women are more likely to turn to financial news websites and publications, and friends and families, Fidelity found.