Warning issued over ‘hidden’ barriers preventing women from saving for later in life
The ‘hidden’ factors that leave women far behind in retirement savings
- A new study reveals that women are disproportionately impacted by insufficient retirement savings, refuting the idea that this stems from a lack of financial confidence.
- Government data shows a stark gender pension gap, with men aged 59 holding a median of £75,000 in defined contribution pension wealth, while women of the same age possess only £19,000.
- This significant disparity is linked to systemic issues such as the gender pay gap, career breaks for child-rearing, increased part-time employment and a heavier burden of unpaid care responsibilities.
- The report argues that financial services often misinterpret women's financial behaviour, stating that “confidence gaps” reflect stereotypes rather than capability, and that mental load hinders long-term financial planning.
- Experts are calling for the financial system and policy to adapt to accommodate diverse life courses and promote flexible working practices to avert a “pensions timebomb” and ensure financial security for all.