Poll: Women's financial future bleak as they save less & say plans aren't suitable for their needs
The financial future for women in the UK looks bleak, according to our extensive survey of how women in the UK are saving to finance their retirement. Released today, the research paints a picture of retired women as the poor relations of society.
Experts here at YouGov say pension providers are failing women because there are no products that take account of women’s specific needs, such as career breaks to raise children.
The research, which polled 2,014 UK resident adults, also reveals a trio of reasons that explain why pension prospects are worse for women: confusion, lack of confidence and lower levels of investment combine to ensure British women can expect to have less money to live on in retirement than men.
- More than half of women (53%) say they worry about how they will afford to live in their retirement
- Only 39% of women, compared to over half of men (56%), think their retirement plans will allow them to have a comfortable lifestyle when they retire
- However, this worry doesn’t necessarily translate into action: a quarter (24%) of women aged 40-54 haven’t even started thinking about saving for retirement – compared to just 16% of men in the same age group
Saving less and confusion
Saving less than men into their pensions is one of the key reasons why women emerge as the underdogs in retirement: 48% of women save less than £100 per month. Ultimately that means they save around one fifth of the amount men invest into a private pension.
- 58% of women admit to finding pensions confusing, compared to 44% of men
- They also lack confidence when it comes to making financial decisions ‒ just over half (55%) agreed they are comfortable making financial decisions on their own and only four in ten (40%) feel they have a good understanding of financial matters in general
- Of those women who do have a pension, less than half (46%) actually know what type of pension it is. This is far less than their male counterparts (62%)
YouGov’s research shows there is a huge education job ahead if pension providers want to engage women’s interest: just 55% of women agree that they ‘always’ read their annual pension statement but almost three quarters (73%) of the women aged 40 and under want more information on pensions.
Suitable pension plans: 'a large untapped market'
With other financial services providers creating products just for women ‒ from car to health insurance and savings plans, women feel let down by pension providers who have failed to follow suit.
- 39% don’t believe pension companies take their career paths into consideration
- While almost two thirds (60%) of women like the idea of a pension designed specifically for them
Adele Gritten, Head of Financial Services at YouGov, says: “Pension providers must meet that need – in a format that is clear and concise – so that today’s busy woman can take control of saving for their retirement.”
Gritten concludes: “There’s a real need for pensions that take account of women’s maternity leave and career breaks. The Government is already planning to close the gender gap in pensions with the introduction of a flat rate State pension next year. Our research indicates that women expect similar initiatives from the private sector. Those providers that step up to fill this void are looking at a large untapped and unfulfilled market.”
For more information please contact YouGov PR Executive Giovanna Clark, +44 (0) 20 7012 6000
