Under half of the female workforce feel financially ready to retire.
This is according to research from the Pensions and Lifetime Savings Association and Close Brothers, who found that 51% of female workers don’t feel ready to retire, with just 23% stating they felt well-prepared.
The figures for male workers indicated a more positive outlook, at 35% and 36% respectively.
Where savings are concerned, the data indicated a further contrast between the genders, particularly in terms of pension saving.
On average, the total funds accumulated in a woman’s pension scheme (£53,000) are less than half that of their male counterparts (£120,000).
For general savings, around 40% of female employees have below £5,000 in saved funds; this is the case for just 33% of men.
The difference between male and female salaries remains an ongoing issue and has been cited as a contributor to the gap in savings. For men, the yearly average salary is around 30% higher than women, standing at £37,655 and £27, 379. This also has a knock-on effect to the way people choose to save; when people believe that their disposable income is low, they’re less likely to save it.
Commenting on the research was Head of Financial Education at Close Brothers, Jeanette Makings. She stated: “The savings crisis is thrown into stark relief when looked at under the lens of gender imbalance. Women are not only earning less and therefore saving less, but are significantly less confident about the savings options available and how to choose what’s best for them. Women are more likely to trust friends and family or personal savings websites, which are unlikely to be able to provide suitable and comprehensive information across the entire savings landscape.
“Financial educators, like employers, are better placed to offer guidance and information, but they need to consider the diverse needs of their audience, including what style and content suits the individual members of their workplace. We work closely with employers to deliver effective education incorporating different savings techniques, goals, and needs.”
