21 Jul, 2016
Women behind with their pension pots
According to new research, women are lagging behind men in the retirement savings stakes.
deVere Group understands that a survey undertaken by Aegon UK found that just 10% of women are financially prepared for retirement, compared with 14% of men.
Women's pensions pots look particularly inadequate in comparison to men's, with women having £20,000 stashed away on average while men have an average of £52,500. The average woman is also saving £1,020 less each year compared with the average man.
Despite this lack of funds in their pension pots, women still expect to be able to leave their day job at 63, one year earlier than their male counterparts.
Head of Pensions at Aegon, Kate Smith, said "Despite encouraging signs for women, the truth is that their expectations are simply not lining up with reality”.
However, all is not lost. When Aegon ran the same study in April of 2015, just 5% of women were on track for a comfortable retirement and 14% of women are now saving more into their pension as a direct result of the pension freedoms.
Smith added, "While the freedoms have certainly had a positive impact on the women's savings behaviour, with double the proportion on track for retirement since last year, the challenges women face when planning their retirement remain complex, and it's vital that the government and industry continue to help make pension saving a priority”.
Since last April, the pension freedoms have allowed those aged 55 or over to take funds from their pension pots without first having to purchase an annuity. Other retirees are also taking advantage of being able to invest their retirement funds to maximise their pension.