Women are much less likely to know how much they have saved for retirement than men, according to a new piece of research.
An interview of 510 people found that 27 per cent of women do not know the value of their pension pot or their retirement income versus 15 per cent of men.
This is despite an average annual income of almost £5,000 lower than their male counterpart – at £18,334.
The report also found that women were less likely to seek professional financial advice, and that when they do, 44 per cent of the women surveyed said it was consolidate their pension pots, mainly so they could have everything in one place.
For men, it was all about performance (at 52 per cent, compared with 20 per cent for women).
Maike Currie, of Fidelity International, which carried out the survey, points out that the pension savings ‘gender gap’ is well-documented and largely the result of “historical differences in working patterns”, with the gap widening with age as a result.
However, “it is also driven by behavioural differences”, said Maike, “with the research pointing to women generally being less engaged with their finances and more risk averse”.
She added: “Several factors mean these findings are problematic. Women, on average, are expected to live for longer than men meaning we should have more retirement savings because we will need an income for longer.
“An increasing number of women are now single and/or divorced in later life and cannot rely on a partner for an income in retirement. In the UK it is expected that almost half (42 per cent) of marriages will end in divorce with the average age at divorce being 45 for men and 42 for women.
“The basis of good pension planning starts with knowing how much to expect in retirement and it is vitally important that women, whatever their age, engage with this, rather than burying their heads in the sand.
“Women building up a pot today should invest and have financial plans in their own right. If you are time-poor and finding it challenging to make time to plan for your retirement, it could be prudent to seek high quality expert help.”
For further advice on pensions please contact the expert team at Birchwood today.