State pensioners who are women face a £6,000 shortfall in retirement, it has been warned. Female pensioners risk missing £6k to retire comfortably when they begin claiming their Department for Work and Pensions (DWP) state pension.
Women over 55 receive nearly £6,000 less in annual pension income compared to men of the same age, data shows. On average, male respondents expect to receive £23,700 annually from their pensions, while women anticipate just £18,000—a £5,700 difference. Despite planning to spend £3,500 less than men, women still face a shortfall of £1,200 per year, whereas men expect a surplus of £1,000.
The research also highlights that more than a third (36%) of women over 55 are unsure how much they might receive from their pension each year, compared to just 20% of men. This uncertainty, combined with lower savings, adds to the financial pressures many women face in retirement.
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In addition to pensions, men over 55 have £209,000 saved in cash and other investments on average, compared to £128,000 for women—a difference of £80,000. These disparities in overall savings further contribute to financial inequality during retirement.
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.”
According to Davies, pensioners eed to be aware advisers and wealth managers play a “vital” role in bridging these gaps by helping individuals optimise their retirement strategies. Mr Davies noted that “Behavioural finance tools provide personalised insights that reflect clients unique attitudes and preferences, empowering them to make better financial decisions.”
Over the past three years, the FCA has prioritised effective cash deployment as part of its Consumer Investments Strategy, it says.