Posted on: 7th October 2020
Today we want to reach out to women and ask the question; Why are you lessconscious than your male counterpart? Keep reading for the women’s latest news.
This is not to class women apart from men in the pension stakes but rather to raise the question of why they are not in the same ballpark figures, with around 4 in 10 women in the UK not thinking about their income foror unsure how much they need to be saving or aware of how much they already have in pension savings.
Lower Levels of
When a recent poll conducted towards pre-retired all age candidates into how much they had in savings through the workplace and personal pensions was recorded, 20% of men revealed they had no savings at all.
However, among women in the poll, it was revealed that a third had no idea also. When figures of those who did know the amounts they had stashed away in pensions, the figure was a mere 8% of women in the know against the male 30%. It was also revealed that women were more likely to have low levels of pension savings compared to men.
Part of this discrepancy can be down to a gender pay gap of hourly earnings between women and men. The pay gap is smaller up to the age of 39 but found to widen onwards due to women undertaking part-time work after pregnancy or loss of promotion due to career breaks. With workplace pensions based on earnings percentages, lower earnings result in lesser contributions which highlights for many women a 25+ year period where their pensions grow slower than their male workers.
This is just one example of the possible results from the poll. Others may fall into information access and savings optimism.
Lack of Information
When asking women about how big their pension pot should be for them to comfortably retire, just under half of the women had no idea.
This is not really a surprise and not exclusive to women. This highlights why speaking with the best independent financial advisors UK is recommended for planning retirement. 71% of males polled took a guess at a figure whilst 54% of women also had a dive at guessing. This could highlight an over-confidence for the male demographic and an overly cautious for the female. This could be the truthful highlight that more women are not finding the right information to feel comfortable in guessing a figure, which makes it harder for women to comprehend any idea of how much to save.
Women also have been found to feel less optimism about attaining the level of savings required to successfully retire, which is potentially leading to empathy over understanding how much they currently have in savings.
Does the Gender Divide Affect the Goal?
The big cause of concern is that women remain uncertain about the amount of income they want in retirement.
The women’s pensions latest news shows a staggering 42% of women do not know what income they hope to have, which may be in response to them trying to remain realistic. Both men and women may have cited targets they hope to achieve with women already having access to less information regarding their savings. The overall reveal is that 4 in 10 women don’t have a target in mind for retirement income, leaving an uncertain financial future they head towards.
Is this lower level of pension savings for women a fuel for reluctance to set themselves goals for fear of failing to hit their target? Is the pessimism towards pensions for some women leading to a feeling of not worth trying to build up the savings?
pots have a tendency to build faster than people believe, even for those with a gap in their pension due to a break in career. As an example, a woman in her mid 40’s with a pension pot of £25k can elevate that to generate £8.9k of annual income from mid 60’s to late 80’s if earning £28k and making minimum contributions. Add to that the current state pension it can result in a total income of £18k.