A greater proportion of women than men are walking into retirement financially ill-prepared for the journey ahead.
According to a major survey conducted by pollster YouGov for the law firm Irwin Mitchell, a third of women in their 40s have yet to put any plans in place for retirement. Furthermore, just 22 per cent of women in this age group have an idea of what kind of income they will need to ensure a secure retirement – and the investments required to fund it.
To put these figures into perspective, the comparable figures for men of the same age are 23 per cent and 32 per cent respectively.
Concern: The survey highlights a greater lack of awareness among women of the potential impact of later-life care costs on retirement finances
The survey also highlights a greater lack of awareness among women of the potential impact of later-life care costs on retirement finances. Irwin Mitchell says that the poll results confirm the ‘financial planning gender gap’ that exists between men and women when it comes to retirement.
Emma McCann, a partner at Irwin Mitchell, says: ‘Later life planning isn’t something that comes to the forefront of the mind, especially when there are so many other exciting life milestones to plan ahead for.
‘Yet what these figures are showing is that women are less likely to be prepared.’
She adds: ‘The fact that women over 40 are less likely to know what income they need to retire on, are more likely not to know or understand about later-life care and the costs, and are also more likely not to have any plans for retirement only suggests women will suffer more in later life.’
A report published in 2019 by the Chartered Insurance Institute showed that women retire on average with pension wealth a fifth of that of a man at age 65, while a third of women in their late 50s are currently caring for an elderly relative.
Last week, the Government confirmed plans to increase the age at which someone can access their pension savings. It will jump from 55 to 57 in April 2028.
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