Connect with us

Investing

AUTO-ENROLMENT ONLY HALF THE BATTLE FOR WOMEN

AUTO-ENROLMENT ONLY HALF THE BATTLE FOR WOMEN

The latest Government review into pensions auto-enrolment shows 9 million employees are now enrolled into a workplace scheme and employer contributions have been on the rise reaching a record 61% in 2016-to-2017. However, new data from online pension planning tool, Pension Monster, suggests women are still lagging behind when it comes to saving for retirement.

The findings show only a third (32%) of consumers currently using Pension Monster to review their pension options are female suggesting men generally take more active interest in their savings. And worryingly this lack of engagement appears to correlate with their pension pot sizes, with women accumulating just £70,000, less than half the male users’ £192,000 average pot size.

The career breaks and part-time jobs many women take during their working lives all contribute to this pensions shortfall. As it stands women need guidance to bridge the pensions gap. Significantly, data from Pension Monster shows women with access to professional financial advice have a significantly bigger pot size of around £125,000compared to those earning a similar salary and who are unadvised.

Employers can help their employees engage more with their pensions by hosting online tools like Pension Monster within their workplace websites. This can provide a tailored report to show what their options are and how much is needed to save to meet their retirement goals.

Peter Bradshaw, National Accounts Director, Pension Monster commented:

“Despite the initial success of auto-enrolment, efforts to maintain this level of engagement are necessary. Women in particular will benefit from early and ongoing planning and guidance. Considering women will likely take career breaks for child care, and the fact life expectancy for women has reached 83 years old*, they have the most to benefit from early and ongoing planning and guidance.”

“Advisers should take advantage of online tools to encourage more engagement to help their clients plan for a better retirement.”

*ONS National life tables, UK: 2014 to 2016

Further information on Pension Monster can be found at

https://www.selectapension.com/services/pension-monster

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Recommended

Newsletters with Secrets & Analysis. Subscribe Now