Pension UK: Women facing massive retirement savings gap urged to take action | Personal Finance | Finance
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Pension contributions throughout a person’s lifetime are considered a key way to build sufficiently enough for retirement. However, an issue frequently raised is the gender savings gap, which frequently sees women missing out on building a substantial pot. This could leave the group with limited retirement choices and a narrower scope as to what to do when leaving the workforce.
Express.co.uk spoke to Clare Francis, Director of Savings and Investments at Barclays Wealth, about the matter.
She said: “In some ways, societally, things have changed over the last few decades. For women who have worked and have pensions, hopefully the gender savings gap will lessen over time, and differences won’t be as significant has they have been in the past.
“But events in the last few months and years have really served as a wakeup call to the savings gap.
“It is really important that women are aware of having their own financial independence and security.
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“If the relationship then breaks down, financially the woman can come out of that in a much less favourable position than they were in the marriage, when they may have had their husband’s support and his pension. This can make things go to pot.
“It is really important that women are aware of having their own financial independence and security.
“While the message and reasons why are the same for both men and women, in some respects the risk is potentially greater for a lot of women if they have been planning finances as a couple.
“On an individual basis, they can find themselves in a weaker position. It doesn’t matter if you are married and all your finances are one, but you should always be aware of the value and benefits of your own finances and own investing.”
And this, Ms Francis explained, is particularly true for women who have not planned long-term finances before.
When they are forced to undertake this, it can be a prospect which is daunting and difficult to start.
This could mean women take longer to build up an ample amount in their pension, something which may have a serious impact on retirement.
Ms Francis concluded: “Confidence is a key asset to have when it comes to managing your finances.
“The more you know and understand about your finances, the better equipped you are to deal with whatever life throws at you.”
However, for those considering what to do when it comes to a pension, it is important to undertake research and potentially take advice.
Research will ensure people truly understand their pension pot, how much they will need for retirement, and any necessary steps they will need to take.
In addition, advice from professionals is likely to provide tailored support to an individual’s specific circumstances.
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