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Gender and choice of pension product

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  • Larsen, Linda Sandris
  • Nielsson, Ulf
  • Rangvid, Jesper

Abstract

We use individual-investor data from Denmark to study whether women prefer pension schemes with lower financial risk due to a guaranteed return over those offering more uncertain market-based return. Guaranteed-return schemes provide less risky but also lower expected returns. We study both the extensive (whether women have lower tendency to invest in market-based schemes) and the intensive margin (how much more women invest in schemes with guaranteed return). We find women less likely to invest in riskier pension schemes, and those women who do, invest lower amounts compared to men. This contributes to inequality between men and women during retirement.

Suggested Citation

  • Larsen, Linda Sandris & Nielsson, Ulf & Rangvid, Jesper, 2022. "Gender and choice of pension product," Finance Research Letters, Elsevier, vol. 47(PB).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322000216
    DOI: 10.1016/j.frl.2022.102692
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    References listed on IDEAS

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    Cited by:

    1. Ishay Wolf & Smadar Levi, 2022. "Vague Pension Future: Empirical Evidence from the Israeli Radical Privatized Market," JRFM, MDPI, vol. 15(5), pages 1-15, April.

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    More about this item

    Keywords

    Pension savings; Guaranteed and market-based returns; Gender differences;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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