Women on the brink of retirement might get an unpleasant surprise, while WASPI campaigners are on tenterhooks hoping for some pre-Christmas news.
According to a fresh study, the financial instability many women face in retirement might stem from some misconceptions during their working years.
Aegon’s research, contained in the ‘Second 50’ report, offers a stark contrast between the expectations of working women and the reality faced by those already retired.
The survey revealed that although only 38% of working women think they’ll rely mostly on the state pension, in actuality, 54% of currently retired women do so.
This gap might signal changing workplace trends as more women gain access to other pensions, yet Aegon specialists believe it’s a “wake up call”.
The analysis also suggests that employed women could be “significantly underestimating” how much they will depend on state pension down the line, especially in comparison to just 28% of retired men who lean on it as a primary or sole source of income.
One of the report’s most eye-opening findings is that merely 32% of retired women are confident they can continue affording a comfortable retirement, against 46% of men, exposing the sobering truth of the gendered financial insecurities in retirement, notes Kate Smith, the head of pensions at Aegon.
She highlighted the significance of financial preparedness, stating: “State pensions play a vital role for nearly everyone, but they should not be the sole source of retirement income. It is essential for women to engage in both independent and joint financial planning.
“With the introduction of automatic enrolment almost 10 years ago most jobs now come with a pension, which has changed the future retirement landscape for women. This shift highlights the ongoing importance of practical and forward-thinking financial planning.”
The revelation comes as the Women Against State Pension Inequality campaign anticipates a compulsory reply from Parliament after their petition swiftly surpassed 100,000 backers in less than two weeks.
This achievement Parliament to consider the topic for a debate, following the Ombudsman’s findings against the DWP published earlier this year.
Nonetheless, as the Prime Minister tiptoed around the subject during PMQs this week, the likelihood of such a debate before the Parliamentary recess on December 19 appears increasingly faint.
SNP MP Graham Leadbitter pressed: “How many more WASPI women have to die before the government takes action,” with Sir Keir Starmer responding: “We are moving at pace on all relevant issues. We passed the Budget to provide the baseline for what we need and we’ll continue to do so.”
