Sexes still not equal when it comes to giving Financial Advice - 4 December 2000

Equality of the sexes has come a long way, but Australians still perceive large differences between men and women when it comes to getting advice on money and finance, according to a recent survey by National Australia Bank.

While, overall, 72% of those surveyed believed both sexes were as good at giving advice about money and finance and 65% believed both were equally knowledgable, neither sex had everything it takes to be a good financial adviser.

The survey, which was conducted in October this year, asked 1,200 people for their views on providers of financial advice, including attitudes to gender and age. The National undertook the study to better understand consumer attitudes to financial planning.

Emerging from the survey was that women were clearly considered to be significantly better communicators than men with 43.3% of respondents saying women were better, 38.2% saying the sexes were equal and only 12.4% said men were better. Interestingly, the difference was even more significant for those in the 18 to 24 year old age group, where 50.9% thought women were better communicators.

Men, however, were regarded as more authoritative when it came to giving financial advice. Forty-five per cent of those surveyed said men were more authoritative than women, 35% said the sexes were equal and only 10% said women were more authoritative.

On other fronts, such as believability and trustworthiness, females rated better than males. Almost a half of those surveyed said the sexes were equally believable, but one-third said women were more believable than men and only 10% said men were more believable than women.

Men also lagged women for trustworthiness. Close to 60% of those surveyed said men and women were equally trustworthy, however 27% said women were more trustworthy than men and only 7% said men were more trustworthy.

Commenting on the survey's results, Mr Peter Flavel, the National's General Manager, Global Business and Personal Financial Services, said: "Australia seems to have come a long way in terms of recognising equality between the sexes, however, the survey shows that neither sex is perceived to have everything it takes to be a good financial adviser.

"While most people believe men and women were equally good as financial advisers, this is for different reasons. Men are more authoritative, but women are more likely to be believed, trusted and are superior communicators."

Age is also important for financial advisers, the survey found. Most respondents (54%) over the age of 35 considered the age of the financial adviser to be important.

Almost one in three respondents aged 50 or older - the largest population group in the survey and a key market for financial planning advice - say a financial adviser should be at least 46 years of age. "While for many people under the age of 50, the age of the adviser doesn't matter, the old adage that financial planning customers like to see a bit of grey hair seems to be true," Mr Flavel said.

The full results of the National's survey will be presented on Friday, December 8, in a keynote address to the annual conference of the Financial Planning Association by Peter Flavel. Other areas covered by the survey include attitudes towards financial advice and information delivered over the Internet and other sources of financial advice.

Melbourne, December 5, 2000

For further information, contact:

Majella Allen
Media Relations
Tel: (03) 8641 3500

Peter Flavel
Business & Personal Financial Services
Tel: (03) 8641 5155

Summary of Findings

Financial Planning Study for the National - October 2000

Are men or women better at giving advice on money and finance?

Most Australians (72.1%) say men and women are equally good at giving advice on money and finance, but many people believe the sexes are equal for different reasons. Men are more authoritative and knowledge, but are much harder to trust than women when it comes to advice about money, and lag way behind in their ability to communicate and understand needs. Further, one in five adult Australians (or 2.9 million people) actually had a clear opinion that one sex was better than the other at giving advice on money and finance.

• Most of the population (72.1%) believe men and women are equally as good at giving advice about money/finance, but for many people neither sex seems to have everything it takes to be a good financial adviser.
  
• Men are clearly regarded as being more authoritative, with 45.1% saying men are more authoritative than women, compared to 35.3% rating the sexes as equal and just 10.3% saying women are more authoritative.
  
• Men are not generally viewed as being more knowledgeable than women - 64.6% of Australians say the sexes are equal when it comes to knowledgeable of money and finance, although almost twice as many respondents said men did know more than women (17.1% versus 9.5%).
  
• Women rated very highly for their communication ability - most Australians (43.3%) say women are better, while 38.2% said the sexes were equal and just 12.4% said men were better. The difference was even larger among younger respondents, with 50.9% of respondents between 18 and 24 years or age saying women were better communicators than men.
  
• Women's superiority as communicators also showed up in a higher rating in their ability to understand financial needs. 26.8% of respondents said women were better in this regard, compared to 15.4% for men.
  
• Women were also well ahead of men in the believability stakes, with 32.3% saying women are more believable than men, compared to 47.4% who rated the sexes equal and 9.9% who said men were better.
  
• Worryingly (for an industry that's dominated by men and is based on entrusting others with your money), there was a big difference between men and women in trustworthiness. While 57.1% said men and women were equally trustworthy when it comes to giving advice on money and finance, a significant 26.6% said women were more trustworthy than men, while just 6.9% said men were better. The difference was even larger among younger respondents, with 36.7% of respondents aged between 18 and 24 saying women are more trustworthy than men.
  
• A large number of Australians (some 2.9 million people) did hold the view that men or women are better at giving advice on money and finance. Across the whole population, 10.3% or almost 1.5 million Australians believe men are better at giving advice, while 9.7% or 1.4 million Australians say women were better.
  
• The preference for male advisers was stronger in some sub-groups of population, namely people over the age of 50 (14.7% said men were better), people who had never used the Internet (15.3%) and people in Tasmania or Queensland (14.5% and 13.7% respectively).
  

  What's the youngest age you think a professional financial adviser can be to help you make important decisions about your life savings?

  Age of financial adviser does matter to most Australians over the age of 35, and it becomes more important for older age groups. The most preferred age for a financial adviser is between 46 and 55 years of age.

• Most Australians over the age of 35 say age of financial adviser of important.
  
• Almost one in three respondents aged 50 or higher (the largest population group in the survey and a key market for financial planning advice) say a financial adviser should be at least 46 years of age. Less than one in 10 in this age group would be happy dealing with an adviser who is 35 years of age or less.
  
• Australians over the age of 50 showed a strong preference for an adviser with an age much closer to their own, with 28.3% of respondents over the age of 50 nominating 46 to 55 years of age as the minimum age for an experienced adviser.
  
• 46 to 55 years of age was nominated most often as the youngest age at which a financial adviser could help them make important decisions about their life savings. 19.7% of respondents (2.8 million Australians) selected this age group, well ahead of the next age group (36 to 45 years, chosen by 14.1% or 2 million Australians). The next most nominated age groups were 26 to 35 (9.5%), 25 and under (3.3%) and 56 to 65 (1.8%).
  
• Women are significantly less concerned than men about the age of their financial adviser. In fact most women, (51.8%) say age does not matter, compared to 44.8% for men.
  
• Younger Australians are even less concerned by age of adviser, with 66.3% of 18 to 24 year olds and 51.2% of 25 to 34 year olds saying age of adviser does not matter.
  

  Have you used a financial planner or adviser in the past?

  Use of financial planners is high, compared to the past. In fact, exactly 50% of all Australians over the age of 35 say they have already consulted a financial planner at some stage during their life. Internet users were the biggest users of financial planning advice, more so even than those on higher incomes. Usage of financial planning is likely to rise further, based on people's intentions.

• 45.6% of all Australians have used a financial planner in the past, with usage higher for men (48.6%) than women (42.7%). Looking at age groups, usage was highest among 35 to 49 year olds. Most Australians in this age group (50.7%) have consulted a financial planner, with usage only slightly lower among respondents over the age of 50 (49.5%) and among 25 to 34 year olds (48.7%).
  
• In total, exactly 50% of all Australians over the age of 35 say they have consulted a planner.
  
• Usage was highest among respondents who use the Internet to gather financial information, with 63.8% of respondents in this category reporting they had used a financial planner in the past. Similarly, those who use Internet banking were large users of financial planners. (58.9%).
  
• Respondents on higher incomes ($60,000 plus) were also large users of financial planning advice (57.5%), but this figure still did not match the level of Internet users.
  

  Would you consider using a financial planner in the future?

  The number of people using financial planners appears set to grow. Younger age groups are more likely than average to seek out a financial planner, and Internet users were also highly likely to consult a professional adviser.

• 63.0% of all Australians said they would consider using a financial planner in the future, with intentions about equal for men and women.
  
• Responses to this question were highest among younger age groups - 83.5% of 18 to 24 year olds, 76.0% of 25 to 34 year olds and 66.3% for 35 to 49 year olds. .
  
• Leaving aside age, Internet usage was the biggest determinant of Australians' likelihood of consulting a financial planner in the future. 74.0% of respondents who use Internet banking and 73.7% of those who use the Internet to gather financial information said they would consider using a financial planner in the future.
  
• Internet usage was more important than income in determining whether Australians will consult a financial planner in the future, with 73.5% of respondents on incomes of $60,000 or more saying they would consider using a planner. .
  

  Imagine you had more than $100,000 to invest. Which sources, if any, would you use to seek information on financial products and services?

  Most Australians still consult family and friends first for financial information. But the Internet has raced into second position and is used more frequently than newspapers, magazines and television when Australians need financial information. Among those who use the Internet, it is the most relied on source of information, more popular even than family and friends.

• Across the whole population, family and friends are the most popular source of financial information for Australians making a decision about how to invest a large sum of money. 57.4% of all respondents say they would ask family/friends, with women (62.7%) significantly more likely then men (51.8%) to use this source. .
  
• The Internet was the next most popular source - nominated by 37.8% of all respondents (roughly equal among men and women), followed by newspapers/magazines (36.8%), TV show (32.0%) and none/don't know (17.7%). Many said they would use more than one source. .
  
• Younger Australians were more likely to use the Internet, with 59.1% of 18 to 24 year olds and 56.3% of 25 to 34 year olds saying they would use the Internet as a source of information. However, information provided by family and friends was also significantly more important to these age groups. Respondents over the age of 50 shied away from the Internet, with only 17.1% saying they would seek information in this way. A large number (31.0%) in this age group were unsure where to go. .
  
• The Internet was more popular with higher income earners, with 49.3% of those on incomes of $60,000 or higher saying they would use it to find financial information. .
  
• The Internet as a source of financial information was most popular with those who had already used it in this way or who banked over the Internet. In fact, it was more popular than family and friends. 72.3% of Australians who already use the Internet to seek financial information say they would use it again for a big investment decision, compared to 54.1% who said they would ask family and friends. Among Internet bankers, 65.5% say they would consult the 'Net for information, compared to 61.0% who would ask family and friends. .
  

  Would you feel comfortable making decisions based purely on information sourced through the Internet?

  While the Internet is the second most popular source of financial information for Australians, a large majority is uncomfortable about relying on this information to make financial decisions. There are signs, however, that the Internet could become an accepted and trusted source for many more people. .

• Almost four out five Australians (78.8%) say they would be uncomfortable making financial decisions that relied on information gained through the Internet. More than half the population (52.1%) strongly disagreed with the idea of making decisions in this way, with a further 26.6% somewhat disagreeing. The discomfort was highest among women.
  
• A minority of Australians are comfortable with relying on the Internet, with 4.7% or 672,000 people strongly agreeing with the idea of making financial decisions based on information sourced from the 'Net and further 10.9% somewhat agreeing. .