Stereotypes Can Impact Investment and Pension Advice Given to Women
This research uncovers how subtle, stereotype-driven mismatches in investment advice can unintentionally impact pension outcomes—especially for women. Unlike explicit bias, these effects arise when advisors over-rely on group stereotypes and underutilize individual risk preferences, leading to less suitable recommendations. Professional experience and individualized risk assessments can substantially reduce these biases. For pension fund managers and risk officers seeking to close wealth gaps and optimize long-term outcomes, this study provides essential insights into the importance of modernizing advisory processes to foster fairness and financial inclusion.