Women are less likely to take advice at retirement

2nd September 2014

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Only 40 per cent of women say they are likely to take financial advice at retirement, compared to half of men, a new study reveals.

Two in five working women aged 55 or over say they would value expert advice when retiring compared to 52 per cent of men.

Yet 49 per cent of UK women say they are concerned about not having enough money to make ends meet in retirement, compared to 39 per cent of men.

Almost half of women admit they are unaware of what products and services are available to them to generate income in retirement, compared to a third of men, according to the research by annuity provider MGM Advantage.

Women typically underestimate their life expectancy by 10 years, while men do so by five years, running the risk that they may end up underfunding their retirement.

Andrew Tully, pensions technical director at MGM Advantage, says: “It is worrying that women don’t seem to value expert advice to help them plan for their retirement as much as men do and are likely to make decisions about financing their retirement by themselves, with some spending less than 24 hours making these life-defining decisions.”

He adds that recent reforms giving retirees increased freedom and choice mean that decision-making is more complex.

He says:  “There is a real risk that without expert advice, people approaching retirement, especially women, may receive a poorer outcome than before the reforms.

“We need to ensure anyone taking decisions about their retirement takes advantage of the guidance that will be available with well signposted hand-offs to financial advice.”

 

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