Standard Life has revealed that almost one third of women are not planning adequately for retirement. According to their data, only 38% of women have planned for retirement, this is despite them, on average, living for longer. The figure for men is around 50%. On top of this, women are more than half as likely to not have a personal pension and are also less likely to know what a personal pension is. Half of all men who are married that buy an annuity opt for a single annuity as this pays out a higher initial income. This is in spite of the danger that they would leave their spouse with no pension income if they pass away sooner.
Pension expert Mark Polson who works for Standard Life said that “…women will most likely outlive men, yet are least likely to have a plan for their money in the future, creating a pension income gender gap.” He added that there are many women who risk jeopardising their future income by relying solely on their partner’s pension plan. The solution would appear to be better planning by women which may include building up their own pension fund and ensuring that they advise their partner to opt for a joint-life annuity incase they pass away sooner.
