According to a British Study called the 2016 Readiness Report, women are still
significantly behind men when it comes to being prepared for their retirement.
The UK’s average readiness score is currently sitting at 51. However, while men
have a readiness score of 54, women have an average readiness score of just 49.
On first glance, it might not seem like the gap is as wide as you might expect.
Here some information from the report: (for the full report go here
Pdf file)
How ready are you for
retirement?
Pensions have graced the cover of almost every newspaper in the UK in the
past 12 months, and there has certainly been a significant amount of column
inches dedicated to the topic. But, the problem remains. Lack of preparation
for retirement in women certainly has roots in previous employment patterns and
social norms, and women are still more likely to have career breaks than men to
care for family. However, there is also a lack of pension awareness across both
men and women and a need for change.
Traditionally, women have relied on a spouse to provide for their
retirement, but in today’s age of independence and equality, there is a need
for women to take responsibility for building up their own pension pot.
People
reaching State Pension Age after 5 April 2016, will build up a State Pension
based on their own national insurance contribution record, and apart from some
complex transitional arrangements, it won’t be possible to inherit a spouse’s
pension. It is increasingly important that both government and industry make a
concerted effort to further encourage women to plan for life after work.
Currently, women on average tend to live 3.7 years longer than men and they will need to make
sure they have an adequate retirement income to live on.
The Readiness
report research shows that women typically aim to retire aged 64,
which is problematic given that by 2020, the state pension age for women will
have risen to 66, if they don’t have private pension savings to fill the gap.
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