The Pensions Gap
The Fawcett Society was founded 150 years ago and is now the UK’s leading charity campaigning for gender equality and women’s rights. This week with support from Scottish Widows they released the report Closing the Pension Gap: Understanding Women’s Attitudes to Pension Saving.
The report considers that most of us are not saving adequately for our old age and that we underestimate our longevity and overestimate the amount of income we will have in retirement.
This is more concerning for women as on average women save around 40% less into their pension pots than men.
This is partially due to the effect of inequality in pay but there are other factors at play.
The Key Findings were:
- That often decisions about pensions were informed by traditional ideas about male and female responsibilities.
- Most women interviewed were unaware of the personal financial consequences of the impact of unequal caring responsibilities and the savings decisions they are making.
- Many interviewees sought pensions advice from men (e.g. fathers or partners) or defer to them when it comes to decision-making about pensions. They display a lack of confidence, which is undermining their financial independence and decision-making. The report suggests that gendered assumptions about maths at school, and the fact that girls and women are put off by a ‘masculine’ financial environment is partly to blame.
- Student debt and the costs of a family were found to be key barriers to saving for these women.
If you are concerned about your pension provision and how much income you could expect in retirement, you are welcome to arrange an appointment with one of our advisers who will be able to inform you and provide you with independent and qualified advice.
If you are interested in reading the full report, please click on the link below.