Aviva Unveils Insights into Women’s Investment Habits and Launches Tailored Guidance with ‘NextDefense’

Aviva Unveils Insights into Women’s Investment Habits and Launches Tailored Guidance with ‘NextDefense’

(IN BRIEF) Aviva has released findings shedding light on women’s investment behaviors, revealing that while most women engage in regular saving and investing, many still face barriers to investment. The study indicates that women tend to prioritize easy access to funds and FSCS protection when choosing savings or investment products. However, a significant percentage of women cite reasons such as perceived risk, complexity, and lack of surplus funds for not investing. Aviva aims to address these challenges with the launch of “NextDefense,” a cybersecurity service, and tailored guidance to empower women in their financial journeys. Joanne Philips, Managing Director of Direct Wealth at Aviva, emphasizes the importance of financial education and providing practical steps to help women navigate the investment landscape. Additionally, Aviva offers key investment tips to support women in achieving their financial goals, emphasizing education, goal-setting, diversification, and staying informed. Through initiatives like “Inclusive Investing” in partnership with TISA, Aviva strives to make investing accessible to all, promoting financial inclusion and empowerment.

(PRESS RELEASE) LONDON, 12-Mar-2024 — /EuropaWire/ — As part of Aviva’s commitment to promoting financial inclusion its most recent research sheds light on women and investing and aims to provide valuable insights to empower women to take control of their financial journeys and plan for a better future.

More than two thirds of women (68%) invest money at least once a month and more than 2 in 5 (42%) check their savings and investments online, or via an app, at least once a week. This leads to almost one in five (19%) knowing exactly how much their investments are worth at any given time.

Of the women who do invest, the largest proportion save into a regular savings account (61%) and one in three (35%) invest into Cash ISAs, but just over one in six (17%) hold a stocks and shares ISA, compared with 30% of men.

Equal numbers (37%) cited ‘easy access to funds’ and ‘being protected by the Financial Services Compensation Scheme (FSCS)’ as the most important aspects of choosing a savings or investment product. ‘Low or reasonable fees and charges’ was most important to almost one in four (23%), and almost one in five (19%) stated that ‘access to a digital app’ was essential.

Almost two in five (37%) of women surveyed say they do not invest at all, compared with almost a quarter of men (24%). The reasons given were varied. Predictably in the current environment, ‘not having any surplus money’ to invest (45%) was top of the list for most women. Almost one in five (18%) think the risk is too high, 10% say they find investing too complicated and 9% worry that they won’t be able to withdraw money if they need it urgently. Some (6%) say they don’t know where to start.  These factors all highlight the need for targeted financial education and further empowerment for women.

Aviva’s research also shows that women have a balanced approach to risk. When asked to describe their investment risk tolerance the majority (85%) said their investment strategy was either medium (35%) or low (50%) risk. This approach is to be commended as studies1 suggest that female investors regularly outperform their male counterparts over the longer term, which is attributed to a patient and more disciplined investment style.

Joanne Philips, Managing Director of Direct Wealth at Aviva says, “In an era where financial independence is a key aspiration for many, there is a need to address some of the unique challenges that many women may face when it comes to investing.

“Whether they are just starting out, or looking to enhance their investment strategy, it’s important to consider and take practical steps to help navigate the often daunting world of investing. By providing tailored guidance for women, we hope to inspire confidence and enable them to achieve their financial goals.

“Aviva’s Wealth app is now available to download, and is designed to provide helpful information for investors and provide a holistic view of all their Aviva investments in one place. We know that a digital experience is important to consumers, so we hope by simplifying the investment journey we can help them to expand their wealth in an intuitive way.”

Key investment tips:

1.  Education: Start by building a solid foundation in financial literacy to develop knowledge about different investment concepts, terminology, and strategies to make informed decisions. There are plenty of online courses, tools and calculators available.

2. Set and prioritise financial goals: Clearly define short and long-term financial goals. Having clear goals will guide the investment strategy and help stay focused on what matters most. Decide whether saving or investing is best for you. Cash guarantees you safety but may get eroded by inflation. Investing will make your money work harder, but you could get back less than you put in.

3. Emergency fund: Before diving into investments, establish an emergency fund to cover unforeseen expenses. This provides a financial safety net and prevents the need to cash in investments in an emergency.

4. Don’t put all your eggs in one basket: Consider spreading your savings and investments across a variety of different funds, assets, and tax efficient wrappers to reduce your risk and optimise long-term returns. Diversification can provide a more balanced approach to long-term wealth creation. Only 7% of women say they are investing in a diversified portfolio vs 18% of men.

5. Support networks: Connect with other investors – building a strong network can provide valuable insights and encouragement throughout the investment journey. Learn from the experiences of others.

6. Stay informed: Keep abreast of market trends and emerging opportunities. Stay updated on what’s happening in the domestic economy or global events that may impact your investments. And regularly review your investment portfolio to ensure it still aligns with your goals and risk tolerance. You may need to make changes based on your financial situation or market conditions.

7. Understand your risk tolerance: Assess your risk tolerance and invest accordingly. Tailor your portfolio to align with your comfort level, ensuring a balanced approach to risk and return.

Investments can go down as well as up. These guidelines are designed to break down barriers and equip women with the knowledge and confidence they might need to navigate the world of finance successfully. However, individual circumstances will vary. It is always advisable to consult a financial adviser who can provide personalised advice based on specific goals and financial situations.

Aviva is a proud member of The Investing and Savings Alliance (TISA) and has joined forces with them to help make investing accessible to all. Its “Inclusive Investing” initiative was  launched amplified at its Inclusive Investing Conference in London at the beginning of March 2024.

Methodology:

The research was conducted by Censuswide between 10th – 12th  January 2024 of 2003 general consumers, aged 16+, national representative sample. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles.

Notes to editors:

• We are the UK’s leading diversified insurer and we operate in the UK, Ireland and Canada. We also have international investments in India, China and Singapore.
• We help our 19.2 million (as at 31 December 2023) customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
• We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2023, we paid £25.6 billion in claims and benefits to our customers.
• In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. We are aiming to have Net Zero carbon emissions from Aviva’s operations and supply chain by 2030. While we are working towards our sustainability ambitions, we recognise that while we have control over Aviva’s operations and influence on our supply chain, when it comes to decarbonising the economy in which we operate and invest, Aviva is one part of a far larger global ecosystem. There are also limits to our ability to influence other organisations and governments. Nevertheless, we remain focused on the task and are committed to playing our part in the collective effort to enable the global transition. Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action at www.aviva.com/sustainability
• Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
• As at 31 December 2023, total Group assets under management at Aviva Group were £376 billion and our estimated Solvency II shareholder capital surplus was £8.8 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
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Media Contact:

Fiona Whytock
Retirement, Savings and Investments
Phone: +44 (0) 7800 692 299
Email: fiona.whytock@aviva.com

@FionaWhytock

SOURCE: AVIVA