A recent study highlights the pension planning disparity between men and women in the UK.
- Sixty percent of UK women have not planned beyond auto-enrolment for pensions.
- Women are less likely to know the details of their workplace pensions compared to men.
- There is a higher tendency among women to contribute only the legal minimum to their pensions.
- My Pension Expert calls for increased government and employer support for women’s financial education.
A recent survey conducted by My Pension Expert reveals that a significant proportion of UK women are trailing behind in pension planning compared to their male counterparts. Specifically, 60% of women in employment have not engaged in pension planning beyond auto-enrolment schemes. In contrast, 46% of men report having advanced their pension planning, underscoring a notable disparity.
The survey, which included 2,000 UK adults, highlights a concerning trend of limited pension knowledge among women. It was found that 15% of women are unsure whether they have a workplace pension or their contribution levels, a figure nearly double that of men, 8%.
Further, women are more inclined to contribute only the legal minimum of 8% — a combination of 5% from employees and 3% from employers — to their pension pots. This minimal contribution is reported by 19% of women, compared to 15% of men. Such statistics indicate potential risks for women’s financial stability in retirement.
Alarmingly, less than half of women, 44%, with a workplace pension are aware of its performance, whereas 60% of men have insights into how their pension is growing. This lack of awareness places women at a disadvantage, potentially impacting their future financial health.
Lily Megson, Policy Director at My Pension Expert, emphasises the urgency of this issue, stating, “Our research casts a daunting shadow over the financial futures of British women as the gender pensions gap once again rears its ugly head.” Megson calls for heightened efforts from both government and employers to provide comprehensive financial education and effective pension monitoring tools to empower women financially.
The disparity in pension planning between genders necessitates targeted interventions to ensure financial security for all.
