Women have more financial independence than ever, with increasing numbers in charge of household finances.
But though they may excel in budgeting for the family, new research shows women still lag behind when it comes to pensions.
A study by the Future Foundation for Friends Life has exposed a gulf in understanding across the genders with men more aware of how much their pension is currently worth, how much income they will have in retirement and whether they will be able to retire early.
The survey also showed men are more likely to realise they can change how much they save and where their pension is invested.
The findings formed part of Friends Life's latest Visions of Britain 2020 reports – entitled "Pensions: The Root Problem".
Experts said the study suggests that women face a "rougher ride" than men over coming years. It found that 59% of women were not saving for a pension, compared to just over half (52%) of men.
Researchers found that women were significantly less likely than men to understand their pension.
Nearly two-thirds of men (65%) said they knew how much their pensions were worth, compared to only half of women (50%), while more than two-thirds (68%) of men claimed to know what their retirement income would be compared to fewer than half (49%) of women.
When it came to where their pensions were invested, 48% of men were aware, compared to just 37% of women. And 59% of men said they understood they could alter contribution levels compared to only 39% of women.
Asked whether they knew whether their pension would allow them to retire early, nearly two thirds of men (63%) claimed to know compared to just 47% of women.
Martin Palmer, head of corporate benefits marketing at Friends Life, said:
"Women are taking greater control of their money but still appear to be disengaged with pensions, whether due to career breaks, lack of flexibility in their working arrangements or simply because they find them confusing.
"Our research suggests that women, more than men, are failing to grasp the urgency of the looming pensions crisis. This is borne out by our own figures, which show average pension contributions made by women have decreased in value. When you couple this with the increase in state pension age, women seemingly have a rougher ride in the years ahead than their male counterparts. It is vitally important that savers, and especially women, focus on the long term to make adequate preparations for their retirement."
Researchers also found that women were less well informed and more confused about pensions than men. Asked to rate the information they had received on pensions, 59% of women said it was 'confusing', compared to 40% of men.
Friends Life has compiled the following top five tips to help women become more familiar with pensions:
1. Assess your current pension position
The ins and outs of pension saving aren't always high on the agenda when you start a new job, so a good start is to find out what you've already got. Have you already joined a pension scheme? How much are you currently paying in? How much does your employer contribute?
2. Keep positively focused
It's no surprise that pensions go unnoticed throughout the big moments in life like getting married, having children, starting new jobs – but sidelining our financial futures even just for short periods means savings gaps that are tougher to fill. Putting off saving today could leave you reliant on the state pension, which may not be enough to provide the lifestyle you want in retirement plus the age at which the state pension kicks in is being pushed back. Positive action, even if just small sacrifices here and there, really could make all the difference down the line.
3. Stay connected
Online banking is now firmly embedded in our day to day lives, but many people don't realise they can also check up on their pension plans at the click of a button. Upcoming changes mean pension information will be more readily available online, and women – taking control of their finances more and more – can steal a march on men by seeing how their pension plans are doing on the web. From new jobs offering new pension benefits to how your contributions change on maternity leave, make sure you're aware of the impact life's changes mean to your pension.
4. Know the score
There is new pension legislation coming at us from all angles, from changes to National Insurance credits for those looking after children in 2010 to automatic enrolment in 2012. And what's more, changes such as the equalisation and increases to State Pension Age are potentially bigger changes for women than men. You can keep up with developments and changes and how they affect you by checking on government websites such as Directgov to getting yourself a state pension forecast.
5. Work out where your money goes
Your contribution into a pension scheme, coupled with contributions you may get from your employer and tax relief from the government really can make a big difference to your pension savings. With auto-enrolment on the horizon the amount enrolled employees are asked to contribute into a pension will increase gradually, starting at 1% and increasing up to a maximum contribution of up to 5% of earnings (after tax relief has been added).
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