>

Please feel free to get in touch

Point of View

The truths about today’s retirement…

An alarming number of non-retired women over the age of 60 are not prepared for their retirement

According to our latest research:

  • Over half (51%) of non-retired women over 60 don’t know how much money they have in their pension pot – compared with 32% of men
  • Over half of women (58%) over 60 also admitted they have yet to start considering a financial plan for their retirement, despite being close to typical retirement age
  • Over a third (38%) of non-retired women over 60 aren’t aware of the pension freedoms compared to only 23% of men

Over half (51%) of those women surveyed for our recent ‘Which Way Forward?’ report admitted that they did not know how much money they have in their pension pot, compared to 32% of men. It is unsurprising therefore that 44% of women over 60 feel unprepared for retirement.

 
Worryingly, over half (58%) of women over 60 surveyed for the report said they have not started to consider a financial plan, whilst only 17% have started to engage with a financial adviser in the run up to their retirement – compared with 27% of men. It is clear that help and guidance is needed, given a fifth of women surveyed for the report said that they kept putting off retirement planning because it all seemed too confusing.
 
Our report suggests that the new state pension, as well as the pension freedoms introduced last April, are contributing to a radically shifting retirement landscape. It suggests that many women over 60 feel in the dark about not just their retirement planning, but also their options at retirement, with over a third (38%) of non-retired women in this age category unaware of the pension freedoms, compared to 23% of men.
 
Elliott Silk, Head of Employee Benefits, Sanlam said: “The disparity in knowledge and preparation between men and women over their retirement plans is concerning, particularly in those close to a “typical” retirement age. Women are more at risk of missing out on the full state pension, and also live longer on average than men – there is a real need to engage and understand that they need to be saving as a matter of urgency. The fact that over half of women do not know how much is in their pension pot triggers the alarm: we are in danger of a retirement black hole with women more likely to be left out of pocket. More needs to be done from a government and industry perspective to help women in particular understand the implications of not engaging with retirement planning, to ensure that we don’t see a generation simply running out of money in later life.”
 
If you would like to read our latest research, the full ‘Which way report?’ is available here or you could watch our short video below. 

To speak to an adviser about your retirement options, please email us at letstalk@sanlam.co.uk and we will be happy to help you.

Date Issued: 5.5.16

Please remember any views or facts expressed above are based on information received from a variety of sources which we believe to be reliable, but are not guaranteed as to accuracy or completeness. Any expressions of opinion are subject to change without notice. None of the information should be regarded as advice. Past performance is not a reliable indicator of future results. Investing involves risk and the value of investments and the income from them may fall as well as rise and is not guaranteed. Investors may not get back the original amount invested. Any tax treatment is dependent upon individual client circumstances and may be subject to change.

Sanlam is a trading name of Sanlam Wealth Planning UK Limited (Reg. in England 3879955) and English Mutual Limited (Reg. in England 6685913). English Mutual Limited is an appointed representative of Sanlam Wealth Planning UK Limited which is authorised and regulated by the Financial Conduct Authority.

Registered Office: St. Bartholomew’s House, Lewins Mead, Bristol, BS1 2NH.

Investing involves risk and the value of investments and the income from them may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.