03 Mar 2010 Tell a Friend
Women fall behind in the retirement planning stakes, leaving themselves vulnerable to financial difficulty once they are no longer working, according to new research by insurer Standard Life.
Statistically, women live on average nine years longer than men in retirement. However, only 38% of women plan for their long-term finances, compared to 50% of men.
Women are overall less than half as likely as men to have a personal pension, and twice as likely to admit to having only a vague idea of what a personal pension involves.
Many women will rely on their husband's private pension fund to support them through retirement. However, worryingly, half of married men at the point of retirement will choose to buy a single life annuity, rather than a joint life annuity.
A common reason for choosing this particular product is that a single life annuity will often yield a higher income at the outset. However, the wife is at risk of losing their income from that private pension fund if their husband dies first.
Mark Polson, Head of Customer Management at Standard Life said: "Women will most likely outlive men, yet are least likely to have a plan for their money in the future, creating a pension income gender gap. It's just not enough for a woman to rely on their partner's pension plans and by not taking control of their own future, they put their future income at risk. We are asking women to reality check their long-term plans now to secure the future they hope for themselves."
The first step is to talk to your partner, and establish which retirement plans are currently in place. Following this, both of you should make an appointment with a financial adviser to discuss the best options to ensure that you are both covered throughout your retirement.
Read more about Pensions and Annuities on the SimplyFinance website.