More women will need advice on their pension pots after the government’s changes come into force next year, Andy McCabe, managing director of the technology specialist Selectapension, has said.
Mr McCabe said that the introduction of auto-enrolment has been changing the financial planning habits of younger people, but younger women still lagged behind their male peers in retirement planning.
He said: “Auto-enrolment made an immediate impact last year, particularly among younger savers, as many would have been exposed to the concept of retirement saving for the very first time.
“However, young male pension savers seem to be more active in seeking out a financial adviser. With so many changes to pensions coming into force in April next year, it is likely that more women will start to actively seek advice on their pension pots.”
He said the changes would present a clear opportunity for the industry to engage with more women about the need to work with a professional adviser.
Mr McCabe’s comments came as a result of a survey conducted by Selectapension, which found that in 2014 men made up 73 per cent of an adviser’s pension review activity, meaning only 27 per cent of all 22-29 year old clients were women.
On average the company found the majority of pension cases analysed by advisers in the past year were for men, while only 24 per cent of pension reviews were for female clients.
Shona Barr, director of Glasgow-based Affinity IFA, said: “We are dealing with younger clients as a direct result of auto-enrolment, and from my experience, younger women often put long-term planning on the back burner due to career breaks in their late 20s and early 30s to start families or go travelling.
“I believe the adviser industry needs to engage with female clients to ensure they do not fall beneath the radar, and continue planning for retirement.”