New research shows that 61% of women say the cost-of-living crisis has made retirement seem impossible, compared to 49% of men. Although 40% of men are confident they will retire at their desired age, this figure drops to 29% among women, and just 26% of women say they have the savings and plans in place to sustain their current lifestyle into their retirement.
The cost-of-living crisis is having a far greater impact on women’s finances and retirement plans than men’s, new research by My Pension Expert has revealed.
The UK’s leading at-retirement adviser commissioned an independent survey of 2,000 UK adults. It found that 61% of women in work believe the cost-of-living crisis has made retirement impossible, compared to 49% of men.
While 40% of men remain confident they will be able to retire at their desired age, this figure drops to just 29% among women.
Similarly, although 42% of men say they have the savings and plans in place to sustain their current lifestyle into my retirement, only 26% of women say the same thing.
My Pension Expert’s research showed that, while there is an alarming lack of financial preparedness across both genders, women are far less likely than men to know how much is saved in their pension pots – less than a third (32%) of women know the value of their pension, compared to 44% of men.
Further, far fewer women (13%) have sought professional financial advice to help them manage their finances during the cost-of-living crisis than men (23%).
Lily Megson, Policy Director at My Pension Expert, said, “The gender gap has loomed over the pension sector for decades. And as the cost-of-living crisis bites, this deeply embedded systemic issue is becoming more acute. Indeed, our research indicates that women feel as though their future finances are spiralling out of control.
“Pension gender inequality is an incredibly complex issue – there is no ‘quick fix’ solution. Action is needed to eradicate gender bias across the board, such as ensuring the affordability of childcare and reducing the earnings requirement for auto-enrolment into workplace pensions. And the government, as well as businesses themselves, must commit to addressing these problems if we are to make any headway.
“Such change will take time. However, that does not mean that women should remain unsupported in the interim. As a priority, independent financial advice must be made more accessible so that women can better understand their financial situation and the options available that suit their specific needs. I urge the government to work closely with regulatory bodies and advisers to make this possible. In doing so, I hope that more and more women will feel in control of their finances and achieve the retirement they deserve.”
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