Managing Your Cash Flow
Widening pensions saving gap between men and women shouldn’t be ignored
2 min read
13 August 2018
Research has found that women don't always pay into their pension pots. So, maybe its time bosses be more vocal why saving money is of importance.
Business leaders should be doing more to help their female employees prepare for retirement after new figures suggested many do not know how much money they have in their pension pots.
Insurance group Aegon said there was a “vast disparity” between male and female attitudes to preparing for retirement.
It found in its Retirement Confidence survey that one in three women don’t know how much they have saved in pensions in contrast to one in five men.
Women, Aegon said, were more likely than men to have no pension arrangements in place, with 15% of women not paying into a pension plan at all.
Despite government initiatives such as automatic enrolment, Aegon stated that only 4% of women have saved over £300,000 in pension savings. That means that just 6% of women compared with 13% of men feel ‘very confident’ that they will have enough funds to live on comfortably in their retirement.
“These figures are staggering and show just how wide the gap between men and women is when it comes to preparing well for retirement,” said Kate Smith, head of pensions at Aegon.
“We know that there a number of factors that impact a women’s ability to save for retirement including career breaks to raise a family or care for elderly parents, however our research shows that many women are burying their heads in the sand and failing to prepare for retirement.
“The widening pensions saving gap between men and women shouldn’t be ignored and the sooner that women are able to engage with pension saving, the better.”
She encouraged women, and men regardless of their age, to think ahead to their retirement and regularly check how much they hold in savings.
“In addition, where possible think about paying in more in order to have the lifestyle you want in retirement,” she said.