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Women could benefit from being more engaged with pension planning

Women are “lagging behind” when it comes to saving for retirement, new research has found.

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The latest government review into pensions auto-enrolment shows nine million employees are now enrolled into a workplace scheme.

 

However, only a third (32 percent) of females, currently using online pensions planning tool Pension Monster, are reviewing their pensions options suggesting that men generally take more active interest in their savings.

 

Pensions Monster said this lack of engagement appears to correlate with women’s’ pension pot sizes, with women accumulating just £70,000, less than half the male users’ £192,000 average pot size.

 

The company said the career breaks and part-time jobs many women take during their working lives all contribute to this pensions shortfall.

 

Significantly, data from Pension Monster shows women with access to professional financial advice have a significantly bigger pot size of around £125,000 - compared to those earning a similar salary and who are unadvised.

 

Peter Bradshaw, national accounts director at Pension Monster, said: “Despite the initial success of auto-enrolment, efforts to maintain this level of engagement are necessary.

 

“Women in particular will benefit from early and ongoing planning and guidance. Considering women will likely take career breaks for childcare, and the fact life expectancy for women has reached 83 years old, they have the most to benefit from early and ongoing planning and guidance.”

 

“Advisers should take advantage of online tools to encourage more engagement to help their clients plan for a better retirement.”

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