According to data from life insurance specialists, LV=, 71% of women surveyed didn’t feel confident in what steps to take to avoid running out of money during their retirement years, compared to 50% of men.
Similarly, 77% of women said they lacked confidence in how to withdraw money from their pension in a tax-efficient way, yet only 55% of men admitted the same.
These findings have been revealed as part of wider research from LV= in its Wealth and Wellbeing Research Programme, with data highlighting the disparity in pension and retirement confidence between men and women.
With better planning for retirement and building financial confidence, both men and women can ease any financial pressures they may have, whatever age they decide to give up work.
Almost two-thirds of women with direct contribution, self-invested personal or workplace pensions don’t know how they will use them to fund their retirement compared to fewer than 50% of men.
Meanwhile, 65% of women aged 50 and over admit they worry about financial hardship during their retirement compared to 54% of men in the same age bracket.
Once in retirement, almost half of women (49%) admit they’d struggle to find the money for an unexpected £500 bill. In comparison, just one-third (33%) of retired men said they would have difficulty covering this extra cost.
While the data suggests concerns are easing around the UK’s cost of living crisis, helped by the slowing down of inflation, certain sectors of society, including retired people, still face personal, everyday financial challenges, such as saving for the future and paying for energy bills, medical fees, and other expenses.
However, in terms of planning for retirement, women believe they may be missing out on certain incentives that would help them financially in their later years because they are less aware of the options available to them.
LV= Chief Commercial Officer, Katherine Carnegie, said: “Our data shows people are a little less worried about rising costs than a year ago, however, we have seen an emerging picture which highlights gaps in financial knowledge for certain age groups at key life stages.
“We want to know why this is happening and could this be avoided if people have better awareness of their options.
“Our research also reveals evidence of a financial gender imbalance. The cost-of-living crisis appears to have a disproportionate impact on women, and we are committed to finding out the reasons behind this.”
