The gender pensions gap risks to become even wider as women are less informed than men, according to new research.
In the UK, 42% of women don’t know how much they have saved for retirement, compared with 25% of men.
READ: There are solutions to gender pensions gap, analysts say
Almost a quarter are unsure how much they’re saving towards their pension each month compared to 13% of men, while another 13% of women are not making any regular contributions at all compared to 10% of men.
“Industry, Government and women themselves need to step up to ensure women are informed and equipped with the right tools, guidance and advice to prepare for retirement and ensure financial independence,” said Maike Currie, investment director at Fidelity International, which carried out the analysis.
“Women already face a myriad of saving challenges from the so-called ‘motherhood penalty’, to the ‘good daughter penalty’ and of course the gender pay gap. While these factors are challenging, often they’re beyond our control. What we can control, however, is how much we are putting into our pensions.”
“Working for longer, having less money to retire with and changing retirement plans are very real consequences of the pandemic. For women early into their savings journey, changes to financial habits have the potential to regain some of this lost ground, ensuring the pandemic doesn’t result in a permanent setback.”
There are various reasons why women don’t save or save more into a pension: the main reasons were lack of available funds, other saving priorities, lack of knowledge of how best to save for retirement and not enough time to plan for pension savings.
“To mobilise more women to invest and take a more active role in their finances, we first need to make pensions something they are engaged with,” said Szu Yi Chin, head of Taiwan at Fidelity International.
“This has the potential to give women more financial freedom, control and independence, as well as reducing anxiety and, ultimately, make retirement what women want it to be.”
Earlier this month, Legal & General PLC (LON:LGEN) said the pension of women aged over 50 is half the size of men’s, mostly due to the gender pay gap and unpaid caring work.