Pension freedoms trigger new gender gap concerns

Keeping your pension invested in retirement has become a more popular option since the pension freedoms – but it appears men are getting a much better deal than women.

April 2018 research by Zurich UK discovered women who are in drawdown have 37% less annual retirement income compared to men, leaving them more than £47,000 worse off. This is largely due to the fact men in drawdown have an average pension pot worth £212,000, compared to £132,000 for women.

By selecting a 3% income yield, the average male pension could generate an annual income of £6,360, whilst a female pension would only command £3,990. To match their male counterparts, women would need to take greater risk with their money. But with only 32% seeking financial advice, they could find it difficult to make suitable decisions.

Source: www.financialreporter.co.uk/later-life/new-gender-drawdown-gap-leaves-women-with-37-lower-retirement-income.html