Women feel much more pessimistic about their financial prospects in retirement than men, new research from abrdn has shown.
In a survey of more than 2,000 adults aged 55 to 75, a third (33%) of women were found to be pessimistic about having enough money to live on in retirement compared to 22% of men.
More than two in five (41%) women are concerned about how they will look after themselves versus 32% of men and 24% are worried about loneliness compared to 16% of men.
Overall, almost a third (32%) of women do not believe they are well prepared financially for retirement, compared with only 19% of men who say the same.
Over three quarters (79%) of women have also never used a financial adviser, or have done previously but do not currently, to help them prepare for retirement. Of those who wouldn’t pay for a review of their pensions, savings and investments, almost one in three said it was because they believed they didn’t have enough money to need advice, compared with just 18% of men.
Shona Lowe, financial planning expert at abrdn, called the difference between men and women’s approach “alarming.”
Lowe said: “Worries and fears for retirement are completely natural, but it is alarming to see the stark difference between men and women. To ease worry, being prepared and having a plan in place is key. Good preparation will ensure all retirees can put their best foot forward when it comes to both their wellbeing and finances, meaning they can focus on enjoying retirement instead.”
The results of the survey also showed greater concern among women around health and wellbeing in retirement, with 31% feeling pessimistic about maintaining health and 37% worried about not being able to do what they want in retirement.
The findings came as just 16% of women over 55 say they feel extremely financially comfortable overall, compared with 24% of men, driven in part by the cost-of-living crisis. The squeeze on household incomes has prompted 15% of women to re-consider their decision to retire fully, higher than the 9% of men who said the same.
Lowe continued: “The cost-of-living crisis is squeezing pockets, so it’s understandable that soon-to-be retirees are worried about how this will affect their finances in retirement. I’d encourage everyone in that position to take a bit of time to really understand what they have in the way of pensions including any final salary pensions, any associated with previous jobs and any private pensions.”
Lowe said once people understand how much their pensions are worth, they can use an online calculator or Retirement Living Standards to see whether they are on track to achieve the level of retirement income they need.
Abrdn said that to support themselves in retirement, a higher proportion of men (36%) plan to rely on investments in comparison with women (20%), while more men (48%) also plan to rely on their personal pension than women (38%).
Meanwhile, a third (31%) of women also admitted they do not have a good understanding of pensions and retirement saving products, versus 17% of men and were more likely to turn to friends and family for information.
