Recent research highlights inadequate pension planning among employed UK women, raising concerns over future financial security.
- My Pension Expert reveals 60% of working UK women have not planned beyond auto-enrolment, compared to 46% of men.
- Independent survey of 2,000 UK adults shows lower pension engagement and contributions among women.
- Only 44% of women are aware of their workplace pension performance, significantly less than men at 60%.
- The gender pensions gap exacerbates worries over women’s financial empowerment and retirement readiness.
Recent research conducted by My Pension Expert has brought to light a concerning trend among employed women in the United Kingdom, where a significant number have not engaged in pension planning beyond the basic auto-enrolment into workplace schemes. Specifically, 60% of women fall into this category, in stark contrast to 46% of their male counterparts. This disparity raises alarms about the financial preparedness of women as they approach retirement.
The study, which surveyed 2,000 UK adults, underscores a broader trend of low engagement with pension planning, particularly among women. The data reveals that women are twice as likely as men to be uncertain about their workplace pension plans or their contribution levels. Specifically, 15% of women reported having no knowledge of such details, compared to only 8% of men.
Furthermore, women tend to adhere strictly to the minimum legal contribution rates. While 19% of female respondents contribute only the legal minimum of 8% of their earnings to their workplace pension, this is slightly higher than the 15% of men who do the same. This adherence to minimum contribution levels may jeopardize women’s ability to secure a comfortable retirement.
The understanding of pension performance also shows a gender divide. Less than half of the female participants, 44%, were aware of how their workplace pensions were performing. In comparison, 60% of their male colleagues were informed about their pension’s status. This gap in awareness is indicative of a broader issue of financial empowerment and engagement that needs to be addressed.
Lily Megson, Policy Director at My Pension Expert, commented on these findings, highlighting the dual challenge faced by women due to historically lower lifetime earnings and insufficient pension planning. She emphasised the urgent need for enhanced financial education and improved pension monitoring tools to empower women. Megson advocates for government and employer intervention to facilitate greater engagement and support to ensure women’s financial stability in retirement.
Addressing the gender pensions gap is essential to ensure women are financially prepared for retirement.
