Millions of women in Britain are at risk of suffering poverty when they retire as the result of poor pension provision, according to a new study.
While statistical data suggests that women generally live longer than men, research involving more than 500 savers reveals that they typically receive less generous pension payouts. This is largely because they fail to check the details of their pensions and do not transfer their pension funds when necessary.
A lack of knowledge
According to a report by Fidelity International, which has been picked up by national newspaper websites such as the Express, more than 25 per cent of the women involved in the study did not know the value of their pension pots or predicted payouts.
Many back office systems for financial advisers reveal a predominance of male clients, with the Fidelity International report appearing to back up the information contained on systems provided by specialist companies such as http://www.intelliflo.com/. This suggests that women are less focussed on the details of their investments, such as their financial performance.
Fidelity International director Maike Currie says logic dictates that women should have a larger pension pot because they are likely need to rely on the income for longer; however, this is currently not the case.
Currie adds that a growing number of females are also divorced or single in later life, meaning that they do not have a partner to rely on for financial support. According to current data, the British average age for divorce is 42 for women and 45 for men.
Currie also says that good pension planning should start with the knowledge of predicted pension payouts and that women should fully engage themselves with such facts. Other experts believe that a lack of female engagement could be down to a lack of attention paid to women by the financial industry.
An industry issue?
Tony Hazell, writing for FT Adviser, claims that the male-dominated financial services industries could be acting as an impediment to women, making the current quest to boost the careers of females within the sector of wider importance.
Women do not need to rely on other females for financial advice, of course, but could more women in the business increase their comfort levels and engagement?