Analysis of the latest Wealth & Assets Survey from independent financial services consultancy Broadstone demonstrates the significant gap between men and women when it comes to pension saving across all age groups.
Of all adults aged over 16, men have a median of £75,700 in private pension savings whether that is pots they are actively contributing to, preserving for retirement or receiving in payment. This is nearly twice as much as women whose median private pension savings are £42,500.
This trend is evident across all age groups but there is a considerable widening of the gap among those moving towards the end of their career. Of those aged 45-54, men have median private pension wealth of £108,100 – over £50,000 more than women whose median savings stand at £57,900. Likewise aged 55-64 and 65-74, men have median private pension wealth of £193,900 and £191,600 respectively – considerably higher than women’s private pension savings of £105,200 and £106,300 in the same age groups respectively.
Rachel Coles, Workplace Engagement Consultant at Broadstone, said: “The Wealth & Assets Survey puts concrete figures around the huge disparity in pension saving between men and women. Private pension savings are vital to achieving a decent standard of living in retirement by providing supplementary income to State-provided sources via benefits or the State Pension. While the problem of pension adequacy is well known and understood, data like this is important in helping to uncover specific segments of society that are likely to be worst off.
“It highlights the need for more targeted support towards women to help encourage higher levels of pension saving while other initiatives that help lower the hurdles women face in progressing their earnings will also support this drive. Financial education will be a major part of building up awareness of the importance of later-life savings, the tax efficient benefits of pensions and how factors like starting to save as early as possible can help maximise savings by the point of retirement. In couples where there is an unequal distribution of wealth, the data also demonstrates the need for careful estate planning to ensure wealth can pass from husband to wife in the event of a death.”
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