Men are more likely to be enthusiastic about pension reforms and better prepared for retirement than women, according to research from the Association of Investment Companies (AIC) into attitudes towards the forthcoming pension changes.
Of the respondents in the AIC’s sample, 54 per cent of men said they were currently making voluntary contributions into a pension scheme as opposed to 46 per cent of women.
Of the 3,147 UK adults in full time work aged 40 or above with a gross personal annual income of $50,000 or more that were surveyed by YouGov for the AIC, 26 per cent said they were more inclined to increase their pension contributions following the changes to come into effect next April.
Men, however, were more likely to increase the amount they pay into their pension, at 28 per cent as opposed to 20 per cent of women.
The changes to pensions made 44 per cent of adults feel more positive about pension schemes; 47 per cent of men felt more confident compared with 35 per cent of women.
There was little difference between the genders when it came to saving into Isas and Nisas.
Ian Sayers, director general of the AIC, said, “It’s well known that many of us are not contributing enough to our pensions. So it is hugely encouraging to see that with new pensions freedom only months away, consumers are already much more enthusiastic about pensions. However, it appears that women are generally more cautious about the pensions freedoms than men.”
Auto-enrolment and guidance from financial advisers may help women become better prepared for their retirement, though women are more likely to have unpaid or part time roles.
Government figures recently reported the largest fall in unemployment in 25 years and a reduction in Jobseekers’ Allowance claims. However, it is most often women that have unpaid roles caring for children and the elderly, with many working part-time jobs on top of these duties.
According to Portal Financial, 87.6 per cent of women working part-time have chosen to do so, but such jobs are often low paid with minimal promotion opportunities. Women account for close to three-quarters of people in part-time work and 63 per cent of those earning £7 per hour or less.
Jamie Smith-Thompson, managing director of Portal Financial, said, “Auto-enrolment is helping millions of people who otherwise would have had no pension provisions, but much more needs to be done to protect women. There was a time when they were able to rely on their husband’s pensions because they had been stay-at-home mums, but with half of marriages ending in divorce and more women working, this is no longer an option.
“It is also worrying that so many women lack confidence in planning for their retirement. This highlights the importance of independent advice, which can explain the possible options available, such as completing their National Insurance record, being able to claim a percentage of their husband’s pension, or the full amount for widows, and claiming backdated pension rights with an Employment Tribunal under the right circumstances.”
