Women’s long-term financial plans most at risk
25 April 2019
Women risk being thrown into ‘financial meltdown’ in the event their relationship breaks down, because of a lack of individual pension rights and financial plans.
New research from Royal London has revealed that 45% of women living with a partner were not confident or did not know if their long term financial plans would be adequate if their relationship fell apart. In stark contrast, just 35% of men felt the same way.
According to the pensions specialist, the findings showed little evidence that women were taking greater responsibility for their financial future, despite the introduction of initiatives such as auto-enrolment. Only 38% of women aged between 18 and 34 and living with a partner said they were confident in their long-term planning, compared to 58% of men in the same age bracket. Nearly a third (30%) of women between 18 and 34 admitted they hadn’t made any long term plans, with just 12% of men stating the same.
The lack of confidence appeared to worsen over time, with just 56% of women aged 55 and over living with a partner, stating they were confident their plans would be adequate if their relationship failed.
Helen Morrissey, pension specialist, Royal London, said: “These findings are extremely worrying and show that we still have a long way to go to ensure women are building resilient retirement plans. While it can be tempting to rely on the pension provision of a partner, particularly if it is generous, women risk financial meltdown should the relationship fail and they could find themselves in severe financial difficulty.”
She added: “We need to build on the success of auto-enrolment and encourage women to start saving early and build up their contributions so they can build a strong financial foundation for themselves.”
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