Women realise financial realities of retirement too late
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Women realise too late how low their retirement income will be, a new report suggests, as they vastly underestimate the importance of state pensions for their later life income and forgo work and pension savings for caregiving. In response, provider Aegon has released a new guide aimed at supporting women to take control of their finances.
‘The Second 50: Addressing the gender pensions gap’, published by provider Aegon on Wednesday, shows 38% of working-age women and 33% of men in that group expect the state pension to be an important or even their only source of retirement income.
However, among retired people, just 28% of men say the same, while the proportion rises to more than half (54%) for women.
“These findings are a wake-up call for all of us. The stark reality is that women are disproportionately affected by financial insecurity in retirement,” said head of pensions Kate Smith.
‘The Second 50: Addressing the gender pensions gap’, published by provider Aegon on Wednesday, shows 38% of working-age women and 33% of men in that group expect the state pension to be an important or even their only source of retirement income.
However, among retired people, just 28% of men say the same, while the proportion rises to more than half (54%) for women.
“These findings are a wake-up call for all of us. The stark reality is that women are disproportionately affected by financial insecurity in retirement,” said head of pensions Kate Smith.
The disparity shows that many women may have fewer savings and might have prioritised immediate financial needs over long-term planning, potentially leading to greater financial dependence on their partners, Smith said.
The fact most jobs now come with a pension has changed the future retirement landscape for women, she argued.
“State pensions play a vital role for nearly everyone, but they should not be the sole source of retirement income. It is essential for women to engage in both independent and joint financial planning,” she stressed, saying Aegon’s new guide is designed to give women the information and resources they need to plan effectively for retirement.
“By taking control of their own financial future and having open discussions with their partners, women can look forward to enjoying their later years with confidence and security,” Smith said.
The provider’s research found fewer than a third (32%) of retired women said they feel extremely or very confident in always being able to live a comfortable lifestyle in retirement, compared with 46% of retired men.
It highlights Office for National Statistics data on 'sandwich carers', who support children and elderly parents, which found around half (53%) of them are unable to work at all or as much as they would like due to their caregiving responsibilities, impacting their later pension income. Almost two-thirds (61%) of sandwich carers are women.
The report published today follows ‘The Second 50: Navigating a multi-stage life’ report from September last year.
The report published today follows ‘The Second 50: Navigating a multi-stage life’ report from September last year.
