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Pension plans inadequate for 62% of women

04 March 2010 / by Andy Davies

Three in five women are failing to plan adequately for their retirement, leaving them financially at risk in the future, Standard Life has revealed.

It has found that despite women typically living longer than men, only 38 per cent compared to 50 per cent of men have made plans for their retirement.

In addition, women are less than half as likely as men to have a personal pension and twice as likely to admit they do not really understand what a personal pension is.

Meanwhile, the pension provider has also found that half of all married men at retirement purchase single life annuity rather than a joint life annuity because it can provide a higher income from the outset, despite the danger of leaving their spouse without any private pension income if they pass away sooner.

Commenting, 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."

He claims that many women are putting their future income "at risk" by relying on their partner's pension and not taking control of their own future.

"We are asking women to reality check their long-term plans now to secure the future they hope for themselves," he added.

© Fair Investment Company Ltd