Almost four in 10 (38%) affluent women approaching retirement are unsure how to turn their pensions and investments into a regular retirement income, says Rathbones.
The number is double the amount of men (19%) who said the same.
Rathbones said that despite having accumulated significant wealth, many investors remain uncertain about whether they can achieve the retirement they desire. More than a third (35%) of women do not believe their retirement income will allow them to live well, compared with 22% of men.
Similarly, 34% of women do not believe they are on track to achieve the retirement they want, compared with 20% of men, while 32% of women do not have a clear idea of how much they will need in retirement versus 20% of men.
Yet, the research found almost half (47%) of affluent investors have not taken formal financial advice about retirement.
Camilla Stowell, chief executive officer of wealth at Rathbones, said: “Individuals are increasingly responsible for making complex decisions around pension drawdown, investment risk, tax planning and longevity, increasingly without the certainty previous generations enjoyed from defined benefit pension schemes, which guaranteed an income.
“Our research suggests women are finding this transition particularly challenging. In our conversations with clients, we regularly hear concerns about making the wrong decisions, withdrawing too much too soon, or being overly cautious and depriving themselves of experiences they can comfortably afford. Striking the right balance between enjoying retirement today and preserving financial security for tomorrow is one of the biggest financial challenges many retirees face.”
The research also found that concerns about financial security outweigh aspirations for the lifestyle retirement can provide.
Half (50%) of affluent investors rank feeling financially secure among their top three retirement priorities, compared with 38% who prioritise maintaining their desired lifestyle, including travel, hobbies and discretionary spending.
Stowell added: “For many people, the fear of running out of money is greater than the desire to spend it, even among the affluent. Our research shows that wealth alone does not always create confidence, and that anxiety is particularly pronounced among women.
“Retirement should be about enjoying the freedom that wealth can provide. Yet many people struggle to make the shift from accumulating wealth to using it confidently. Effective planning and advice can provide the reassurance needed to spend with confidence while maintaining long-term financial security.”
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