Recent research has highlighted a worrying trend in pension planning among UK women.
- Three-in-five UK women rely solely on auto-enrolment for pension planning, compared to 46% of men.
- Fifteen percent of women are unsure if they have a workplace pension, nearly double the rate of men.
- Women are more likely to contribute only the legal minimum to pensions than their male counterparts.
- Less than half of the women are aware of their pension performance, suggesting a need for better education.
New research conducted by My Pension Expert reveals that a significant number of employed women in the UK rely solely on auto-enrolment for their pension planning. This reliance is notably higher compared to their male counterparts, with three-in-five women, or 60%, admitting to this limited approach, whereas this is true for only 46% of men.
The survey, which included 2,000 UK adults, highlights a troubling trend where 15% of women are uncertain whether they possess a workplace pension at all, almost double the percentage of men at 8%. This lack of awareness among women points towards a broader issue of low engagement with pension planning across the board.
Moreover, women are more inclined to contribute just the legal minimum of 8% to their workplace pensions, with 19% of women following this pattern. This contrasts with 15% of men adhering to the same minimal contribution levels, indicating a gender disparity in proactive pension planning efforts.
Adding to the concerns, less than half of the women surveyed, 44%, claimed knowledge of how their pension is performing, a stark difference when compared to 60% of men who keep track of their pension’s progress. This indicates a significant gap in financial literacy and highlights a critical need for enhanced educational efforts.
Lily Megson, Policy Director at My Pension Expert, commented on the findings, emphasizing the gravity of the gender pension gap. She asserted that, “Women’s retirement health is already impaired by their lower lifetime earnings, so it is doubly concerning that they are not being especially diligent with their pension planning.” Her statement underscores the necessity for both government and employers to foster increased engagement and provide tools for better pension management.
The research underscores an urgent need for increased engagement and education in pension planning among UK women to secure their financial future.
