On average women over 50 have about half as much in their pension pot when compared with men (£82,311 vs. £43,014).
The most recently available data from the Office for National Statistics (ONS), indicates that men below State Pension age are more likely to have active private pensions than equivalent women (56%, compared with 51%). This significant difference in finances has left women more likely to be unsure about their ability to fund their retirement; 56% of women do not feel like they will have enough to fund their desired personal income in retirement compared to just 43% of men. This is despite the fact that on average, women expect a 15% smaller income than men once they retire. Women are also less likely to be aware of the current value of their pensions (34% vs 27% of men).
Outside of pension wealth, men on average have a higher level of cash savings, which also contributes to overarching financial security. On average, men over 50 have £40,167 in savings compared to just £29,327 for women.
According to ONS data, occupational defined benefit pensions are the only pension type where women have higher participation than men (28% vs. 25% of men). Data indicates that this is likely to be linked to the fact that the majority of occupational defined benefit pensions are public sector pensions and in 2017, the most recently available data, women made up just over two-thirds of public sector employees in the UK.
Andrew Kail, CEO, Legal & General Retail Retirement, said:
“Our data demonstrates a significant difference between the pension wealth of men and women and raises further concerns about women’s finances at the point they reach retirement. We know there are a multitude of factors that influence these figures, from the gender pay gap to the increased likelihood of women working part-time or taking career breaks when compared to their male colleagues. We also know that the pandemic has likely increased this disparity due to the unpaid caring responsibilities that typically fall to women.
“We need to do more to address this financial inequality but also to address the root causes that influence it, specifically the significant burdens our society places on women outside of their careers.”
