November saw the retirement ages of both men and women achieve parity for the first time in 70 years, however, research by Aegon highlights that almost half of women (49%) admit they are not confident of being able to enjoy a comfortable retirement, compared to a third of men.
Until now, the state pension age was 63 for women and 65 for men, but after 6 November, all workers will retire at 65, before increasing to 66 on 5 December 2018, then rising to 67 between 2026 and 2028.
Aegon pensions director, Steven Cameron, commented; “On 6 November this gender pensions gap will become even wider as the women’s state pension age rises to age 65, bringing it up to the male age. While some may see this a step forward towards equal treatment, it actually means women are a further step back compared to men with pensions.”
Statistics show that, on average, women have smaller pension pots than men and by the time women reach age 50, they have accrued only half the pension savings (£56,000) of their male counterparts, who have saved £112,000.
To close that gap, financial experts estimate that a women aged 30 would need to contribute an extra £21 per month, and by age 50, that figure would have risen to an extra £360 a month.
Here at The Financial Planning Group, we have over 25 years’ experience in advising clients on how to plan for their futures, WITHOUT running out of money. As chartered financial planners, we employ sophisticated ‘future-forecasting’ software to aid in the advice process, where we can model various retirement scenarios and stress test them all.
We guide our clients through the complex world of pension freedoms and let them get on with enjoying the retirement their savings enable them to enjoy and have peace of mind.
If you would like to like to arrange a consultation at our offices in the heart of Teddington, please call Tim Norris or Alan Clifton on 0800 731 7614.