Analysis of Selectapension’s data shows that nearly a quarter of women (24%) reviewed their DB scheme options with an Adviser before the age of 49, compared to 19% of men. This suggests that before women reach the age at which they can access their pension pot (55), they are proactively engaging with their pension scheme and reviewing the options available to them, such as transferring to a DC scheme.
This increased engagement could come partly as a result of recent high profile media campaigns surrounding women and retirement. With the state pension age rising to 66 by 2020 for women, they are under increasing pressure to ensure that their pension pots last longer and therefore are proactively reviewing their options for later life.
Data also shows that 80% of the DB cases Advisers reviewed in the last year were for those over 50, compared to 67% in the previous year. This suggests as people approach retirement age they are looking to explore the newfound flexibilities offered by the pension freedoms.
By contrast, Advisers have reviewed fewer younger clients (under 39) with DB schemes . In the last financial year, data shows 2% of cases analysed by Advisers were under the age of 39 compared to 11% in 2014/2015.This may be attributed to the fact that younger people are increasingly less likely to have membership of a DB scheme as their popularity with employers diminishes.
Andy McCabe, Managing Director, Selectapension commented: “Women are taking the initiative to review plans before they can access their pension pot at 55, and are seeking advice on their DB schemes. With the increase in state pension age for women and the pressures of ensuring that their pension pots go further, women are starting to take advantage of the options available to them earlier in life.
For younger people, retirement seems like a long way off and there are fewer gold-plated DB schemes available for them. It is important for Advisers to engage with this younger demographic and encourage greater saving, so they can make the most of the flexibility of DC pots at retirement.”
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