Twice as many women don’t know how much they have in pension savings when compared to men, according to new research.
This lack of engagement, combined with lower annual earnings and higher auto-enrolment exemptions, is fuelling the pensions gender gap, according to Aegon, who conducted this research.
The insurer found 34 per cent of women don’t know how much they have saved in pension, compared to just 16 per cent of men.
Meanwhile, the number of women without any pension arrangement has nearly doubled from 7 per cent in 2017 to 13 per this year.
This figure compares to 8 per cent of men. One reason for this disparity is women’s earning are typically less than men, and they are more likely to be on part-time contracts, which can mean they do no qualify for auto-enrolment.
Elsewhere the survey found that women are less likely to plan for their retirement, with 40 per cent of women claiming they have never estimated their income needs when they stop working, compared to just 32 per cent of men.
Aegon’s head of pensions Kate Smith says: “It’s hugely disappointing that despite the attention being given to the gender pay gap, this awareness does not seem to have inspired women to show more interest in their pensions.
“Knowledge is key to helping narrow this gap, so it’s worrying to see that more than a third of women remain in the dark about what they have saved for retirement – if anything at all.
“We already know that women are at a disadvantage in terms of pay, childcare responsibilities and costs and reduced working hours but by not having a complete picture of their financial situation, they are putting themselves at a further disadvantage. That picture includes their pension.”
“Showing an interest in what you have saved in a pension or what you might need, could be the difference between the retirement you want and the retirement you get.”
She also called for auto-enrolment to be more inclusive and to include lower earners who are disproportionately female. Smith adds: “A solution needs to be found for individuals with multiple jobs, each below £10,000 allowing them to benefit automatically from an employer contribution. This will help to close the gender pension gap.”
