Rational Lifetime Investment Strategies: Gender Differences in the Allocation of Assets in Retirement Savings Plans

Abstract

Previous research has demonstrated that women have greater risk aversion than men. Controlling for age, education, family size, income, self-reported financial risk tolerance, and occupation, this study examines the impact of gender on asset allocation decisions in retirement accounts. Our findings suggests that after accounting for a large number of factors, single women tend to choose more conservative investment allocations in their retirement accounts than do single men. However, within married households, no significant gender differences in asset allocation were found. Spousal influence within married couples was examined and seemed to explain away gender differences for married households.