Women over 55 receive nearly £6,000 less in annual pension income compared to men of the same age, new research has revealed.
Britons have previously been warned about a potential state pension “shortfall” later in the year despite the triple lock boost.
The study by Oxford Risk found that women in this specific age group are more likely to face financial shortfalls than their male counterparts, which could cost them thousands of pounds.
More than a third of women over 55 are uncertain about their expected annual pension income, compared to just 20 per cent of men.
The stark disparity emerges as women expect to receive £18,000 annually from their pensions, while men anticipate £23,700, creating a £5,700 gap.
Despite women planning to spend £3,500 less than men in retirement, they still face an annual shortfall of £1,200, while men expect a surplus of £1,000.
Women and men show distinct approaches to funding their retirement years, according to the research.
Women are more likely to consider part-time work, with 41 per cent viewing this as an option compared to 30 per cent of men.
Property income is also more popular among women, with 21 per cent planning to use this funding source versus 18 per cent of men.
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Women in the UK face a £6k “shortfall” in retirement savings compared to men
PA
However, men show a stronger preference for investment-based retirement funding. A quarter of men rely on self-invested personal pensions, compared to just 16 per cent of women.
The gap widens further with investment portfolios, where 23 per cent of men utilise this option. This is more than double the 10 per cent of women in the UK who do the same.
Around half of both men and women rely on cash surpluses to fund their retirement, at 53 and 50 per cent respectively.
Beyond pensions, the research revealed significant disparities in overall savings between men and women over 55.
On average, British men in this age demographic have around £209,000 saved in cash and other investments. Women, by comparison, hold substantially less at £128,000.
Britons are increasingly concerned about their retirement income amid the cost of living crisis PAAnalysts from Oxford Risk noted these savings differences further contribute to financial inequality during retirement in their assessment of the survey’s results.
Greg Davies, head of behavioural finance at Oxford Risk, said: “Our research highlights significant disparities between women and men financial security in retirement.”
“Despite planning to spend less, many women face substantial financial gaps, with lower savings and less certainty about their retirement income,” the retirement expert added.
According to Davies, Britons need to be aware advisers and wealth managers play a “vital” role in bridging these gaps by helping individuals optimise their retirement strategies.
The Financial Conduct Authority (FCA), the UK’s regulator for financial services, has prioritised effective cash deployment in its Consumer Investments Strategy over the past three years.
However, Oxford Risk is sounding the alarm that widespread reliance on cash could undermine these efforts.
The research firm emphasised the importance of improved support and guidance to encourage more effective investment decisions.
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Pensioners are at risk of a retirement shortfall GETTY According to the organisation, this particular approach would help move pension savers away from the emotional security of underperforming cash reserves towards better returns.
Davies noted that “Behavioural finance tools provide personalised insights that reflect clients unique attitudes and preferences, empowering them to make better financial decisions.”
The findings highlight the need for targeted support to address the pension savings gap between men and women in retirement planning, according to the retirement specialsit.
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