Women’s pension pots are half the size of men’s pension savings research has revealed.
The average pension pot for a woman is worth around £37,500, while for men it is £75,000, according to the study conducted on behalf of Handelsbanken Wealth & Asset Management.
It also found that almost a third (29 percent) of women have pension pots under £25,000, compared to 16 percent of men.
At the other end of the scale, only 12 percent of women have pots exceeding £100,000 compared to 30 percent of men.
The findings were detailed in the asset firm’s latest report, Gender and generation: unravelling the wealth gap.
It found that a higher percentage of women (33 percent) are unsure about the value of their pension pot compared to men (24 percent). This lack of awareness could prove detrimental to their ability to make informed decisions about their retirement savings, the report said.
Overall, women are less likely to have pension savings of any kind. Less than three quarters (71 percent) of women over the age of 40 have a pension compared to 83 percent of men.
The difference is less pronounced for the younger generation as 80 percent of women in their 30s have a pension compared to 82 percent men.
However, only a third (33%) of UK adults feel confident about achieving a comfortable retirement. The gender disparity is present again with 38 percent of men expressing confidence in their future, compared to 27 percent of women.
Researchers said that a lack of awareness may play a role in this, with a quarter of people overall stating that they do not feel their employer is helpful in explaining their workplace pension and post-retirement planning.
Employers have a key roles as the study also highlighted that most pensions are managed by work. The largest share of respondents (38 percent) reported that their workplace managed their pensions, followed by those who oversee it themselves (28 percent). Men are more likely to manage their pensions independently compared to women (33 percent versus 23 percent).
Christine Ross, head of private office (North) and client director at Handelsbanken Wealth & Asset Management, said: “This report serves as a stark reminder of the gender gap in UK pension savings, and the urgent need to address it.
“Women are considerably less likely than men to have pensions and, on average, accumulate substantially less in their pension pots, placing them at greater risk of financial insecurity in their retirement years.
“It’s especially important that older generations of women are supported in narrowing the gap in retirement savings.”
She said that while some progress may be evident among younger generations, employers still need to help ensure women have equal opportunities to build adequate retirement savings. She also said it was key that younger people are getting the right advice when it comes to retirement savings.
“It’s vital that young men and women alike are encouraged to engage with pension planning earlier to make the most of the potential for long-term growth, rather than putting off retirement savings in favour of shorter-term priorities.”
