It is widely reported that women are more likely to have a shortfall in their savings at retirement. This is typically a result of/can largely be attributed to lower lifetime earnings, as a result of caring responsibilities, taking time out for raising families, and the gender pay gap. However, it is also recognised that historically women have been less engaged in investing; statistically they are more risk averse, often hold more in cash and are less likely to seek professional advice. This is evidenced in our own client base which is 80% male.
Further compounding the issue, women have a longer life expectancy and thus are more likely to require a greater retirement fund to sustain their income needs and meet potential care costs in older age.
Equality does however exist within taxation system. Men and women are given the same income tax allowances and for a couple in retirement it is good practice to use both sets of allowances to optimise tax efficiency, this cannot be done if all savings are held in one name. See Tideway’s Guide to Tax Efficient Income in Retirement.
It is important that everyone takes an active interest in their retirement planning needs. Tideway specialise in providing retirement advice, including active portfolio management, aligned to risk. We are here to assist and we offer free retirement Guidance Sessions to help with planning for the years ahead. If you or someone you know wishes to take advantage of this service, please book a session.