Data from the 15th annual Women and Retirement Report3 suggests an increasing proportion of women are prepared for retirement, highlights a continuing disparity in levels of pension savings compared to men.
Record female participation
The report shows the number of women contributing to a pension has risen by 15% in the last 15 years and concluded that 57% of women are now saving enough for retirement. In addition, the average level of savings among women has increased.
Retirement gender gap
Despite progress, the gender pay gap means men are still saving far more into pensions than their female counterparts. Indeed, men typically benefit from an additional £78,000 in their pension pots at retirement, equivalent to 2.5 times the average UK household disposable income.
Challenges to saving
The study highlighted several groups who remain under-prepared for retirement, with lower and middle female earners amongst the least prepared. Additionally, over a third of women entrepreneurs were found to be saving nothing for retirement.
Such worryingly low participation rates partly reflect financial pressures faced by many women. As women typically earn less than men, a larger proportion of their income will inevitably be directed towards essentials such as property or childcare costs.
We’re here to help
Although an increasing proportion of the female population are now engaging with pensions, the research still suggests a high proportion of women have little or no pension provision. If you’re concerned about your retirement prospects get in touch with us. It’s never too late to get your retirement plans on track.
Clifford Osborne are Independent Financial Advisors (IFA) specialising in Pension Advice. We always offer a free initial pension review, so please don’t hesitate to get in touch to book yours.
We are based in Eastbourne, East Sussex, but during the current situation, we are successfully carrying out meetings online with our clients.
3Scottish Widows, 2019
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The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
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