The average pension pot for a woman in the U.K. is five times less than a man’s, a new research from the Chartered Insurance Institute (CII) has found.
In its report published on 24th October 2018, CII said that the average pension pot for a 65 year old woman is £35,800, one-fifth of a man’s, while the average cost for care for women aged 65-74 is £70,000 compared to £37,000 for men.
According to the report, solving women’s pension deficit to improve retirement outcomes for all, the deficit is a result of “British social attitude and cultural norms regarding women’s status in our society.”
Jane Portas said “This report is a call to action for each and every one of us, woman or man, son or daughter, friend or colleague, policymaker, pension provider, financial planner or employer. We all have a role to play in improving women’s pension deficit”.
Today a young woman in the UK can expect to highly achieve educationally, work through raising children until she is 70, save hard for her pension and yet risk facing financial insecurity in later life.
The division starts early in life, as 52 per cent of women in their late 20s say they do not understand enough to make decisions about retirement savings, compared to 38 per cent of men. Furthermore, 75 per cent of employees that fall below the auto-enrolment threshold are women.
Pension Providers and employers have a crucial role to play in raising awareness and improving engagement, and the advances in technology has made this more straightforward than ever before. By seizing the opportunities unlocked by Open banking, providers can use data to give people a truly holistic overview of their finances.
The NDPRC are doing their bit by encouraging employees to attend Mid-Life Planning Seminars at around 30 – 45 years of age and then attend a Pre-Retirement Seminar when within 3/5 years of intended retirement date.