A recent global survey by Aegon has exposed the difficulties women face in preparing for their retirement and that Financial Advisers should help promote pension strategies that take into account those savings barriers men do not face.
The research was taken from 16,000 employees and retirees in 15 countries, of which half where women (7,956). 62% of women were married and 52% had an undergraduate degree or higher.
Although the gender gap between men and women is closing in some of areas of their lives, women are less prepared for retirement than men. Different working patterns and extra child care responsibilities often prevent women from taking steps to plan and save for later life.
Only 20% of women thought they were on track to achieve their required retirement income and 40% stated they did not know. 49% of women in work were not confident they would be able to retire with a lifestyle that they considered comfortable.
Suggestions have ranged from encouraging employees to broaden women’s access to workplace retirement plans using auto-enrolment and ‘auto-escalation’, to encouraging government policies to improve retirement incomes and enable flexible employment for women.
The report states: “Personalised investment advice can make a significant difference in helping the individual in customising a retirement plan that meets her particular situation. Such a customised plan should preferably also provide for a back-up plan to cover for unforeseen events.”