You are here: Home - Retirement - Retirement planning - News -

Female savers falling short of men

0
Written by:
18/04/2017
Men have almost three times as much as women in their pension pots, according to new research.

Findings from insurer Aegon reveal men have £73,600, on average, saved in pensions while women have just £24,900.

However, there is some good news as the value of women’s pension pots is increasing.

In April 2015, women had just £16,700 saved in pensions and last year they had £20,400.

Aegon said the increase was down to the ongoing roll–out of workplace auto-enrolment, the introduction of the pension freedoms, and the fear that pension tax relief could be reduced.

But the firm also said women are becoming more aware of the need to provide for later life. In the last two years, women’s ISA savings, specifically for retirement, jumped from £5,400 to £14,900.

The research suggests the pension freedom rules have had a positive impact.  As a direct result of the reforms, which allow over 55s complete access to their pension savings, 13% of women are saving more into their pension and 14% have realised they need to plan more for retirement.

However, women are falling down when it comes to engagement. Over two fifths (42%) have never reviewed or taken any action that affects their plans for retirement and just a fifth (19%) have engaged in the last six months. This is well below the levels of men, a quarter (24%) of whom have checked or amended their pension plan in the last six months.

This is perhaps why over a third of women (35%) have absolutely no idea how much they have saved in their pension, the study said.

Kate Smith, head of pensions at Aegon, said: “It can’t go unnoticed that women have made some encouraging steps forward in saving for retirement. However, the difference between men’s and women’s pension savings is stark and there are a number of reasons behind the widening pension savings gender gap. Auto-enrolment has successfully introduced 7.6 million people to workplace pensions but the gender pay gap, which is currently 13.9%, means that men are effectively saving more without even thinking about it.

“Women often face a more disrupted savings journey due to maternity leave and working part time, juggling a career and children, so it’s crucial that they actively engage with their pension savings – burying heads in the sand is simply not an option. So it’s concerning that over a third of women in the UK don’t know how much they have saved in their pension. Without this vital information it’s impossible to know what to do next. Knowledge is power after all, and the more they do now to build up their pension knowledge the better their retirement will be.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

After an award-winning health insurance provider?

Winner of best online health care provider in the YourMoney.com Awards 2015

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.
Tesco expected to post significant write-offs

The amount you need to save a month for a comfortable retirement

Brits wanting a comfortable retirement with a household income of £26,000 need to save at least £131 a month f...
The amount you need to save a month for a comfortable retirement

Atom Bank pulls five-year 1.29% fixed rate mortgage

Atom Bank is pulling its five-year fixed rate mortgage priced at 1.29%, just seven days after launching the pr...
Atom Bank pulls five-year 1.29% fixed rate mortgage

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Hove
Hove crowned property hotspot for young professionals

Hove has been named the top property hotspot for young professionals for a third year in a row.

Close