Wealth of Advice, Swale House, Mandale Business Park, Durham, DH1 1TH
Working women "significantly underestimate" how much they will rely on the state pension in retirement, research from Aegon has revealed.
Aegon's "Second 50" paper, which addressed the gender pensions gap, highlighted significant gender disparities in retirement confidence and reliance on state pensions among UK retirees.
The survey showed relatively little difference between working men and women in their expectations of relying on the state pension for their retirement income, as 38 per cent of women and 33 per cent of men anticipated that the state pension would be a significant or their only source of retirement income.
However, the situation among current retirees revealed a significant disparity, as over half (54 per cent) of retired women reported that the state pension was an important or their only source of retirement income, compared to just 28 per cent of retired men.
The survey also revealed that fewer than one in three retired women (32 per cent) felt extremely or very confident in always being able to live a comfortable lifestyle in retirement – a proportion far smaller than among retired men (46 per cent).
Aegon’s head of pensions, Kate Smith, said these findings were a "wake-up call" for everyone.
She stated: "The stark reality is that women are disproportionately affected by financial insecurity in retirement.
"Our research shows that almost double the percentage of retired women compared to retired men rely on the state pension as an important or only source of income in retirement.
"This disparity shows that many women may have fewer savings and might have prioritised immediate financial needs over long-term planning, potentially leading to greater financial dependence on their partners.
"However, with the introduction of automatic-enrolment almost 10 years ago, most jobs now come with a pension, which has changed the future retirement landscape for women. This shift highlights the ongoing importance of practical and forward-thinking financial planning.
"State pensions play a vital role for nearly everyone, but they should not be the sole source of retirement income. It is essential for women to engage in both independent and joint financial planning.”
If you want a better view of what your future could be, we'll have a chat over a cup of coffee in our Durham office and work out if we can add any value to your financial picture.
Wealth of Advice are authorised and regulated by the Financial Conduct Authority, reference number 563909. This website is for information purposes only and is not personal advice.
We are committed to providing products and service of the very highest standards. If you feel that we haven't lived up to your expectations in any way, however, we would like to know so we can put things right for you. If you have a complaint, make sure you contact us directly. Accordingly, we will do all we can to resolve your complaint by the end of the next business day. However, if we can't do this, we will write to you within five working days to tell you what we have done to resolve the problem, or acknowledge your complaint and let you know when you can expect a full response. Furthermore, if we haven't issued our response within eight weeks from the date you first raised your complaint, or if you're dissatisfied with our response, you can ask the Financial Ombudsman Service - www.financial-ombudsman.org.uk - for an independent review. The Financial Ombudsman Service will only consider your complaint once you've tried to resolve it with us, so please take up your concerns with us first and we'll do all we can to help.
Wealth of Advice Ltd is a company registered in England and Wales, company number 07709624.
VAT Number: GB131946515