As International Women’s Day approaches, the team at Rhodes Wealth Management are looking at pension provision for women – and the importance of planning for your future.
Gender pension equality has been an issue of increasing concern over recent years, with the structure of pension freedoms failing to consider women’s working patterns over time.
As calls for reform become increasingly common, a proportion of women are left without enough pension provision for their future. Statistically, divorced women suffer more than others, averaging just a £26,100 pension pot in contrast to £103,500 for divorced men. This is compounded by the gender pay gap, with women earning on average around 17% less than men over their lifetime.
A lack of awareness can often lead to the alarm not being raised until it is too late to alter course, and 4 in 10 women (Aegon, 2019) have not estimated the amount they need for retirement, compared with a third of men. With pension planning, it is a case of the earlier the better- with the eighth wonder of the world, compound interest, supporting this long-term attitude to planning and saving.
Methods of communication have also hindered female investors’ opportunity to understand their pension options, with the language and approach used by many financial institutions targeted towards a male audience, using numbers and returns. Research suggests that women engage with a focus on long-term outcomes.
So, what can you do to ensure you’re planning for your future, and aware of your allowances and pension freedoms?
If you’d like to talk to one of our friendly and approachable team about planning for your future, get in touch today on 01332 497670.
Pensions Policy Institute, Understanding the Gender Pensions Gap, July 2019
Aegon, A-E exemptions and low engagement fueling pensions gender gap, November 2019
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