£23,000 gap in retirement expectations between genders

Women expect half the annual income of men in retirement, anticipating they will receive £24,000 a year compared to men’s £47,000, according to research by Aegon.

Macmillan-David-AegonUK-2014

The Aegon UK Readiness report surveyed 4,000 UK employees to assess their behaviour, awareness and finances to determine their readiness score, which provides a mark out of 100 to indicate how ready a person is for retirement.

The research found that almost half (46%) of female respondents have never checked the performance of their savings, compared to 36% of men.

Women typically save an average of £175 per month, while men save an average of £328.

However, women contribute more to an individual savings account, putting in £183 a  month, compared to the £127 saved by men.

The report was carried out ahead of the launch of Aegon UK’s Retiready, a digital service designed to help people consider their retirement ambitions and understand their overall readiness for retirement.

The average readiness score for women was 50, while the average score for men was 54.

David Macmillan (pictured), managing director of Aegon UK, said: “We know that most of the UK population is falling short of their retirement objectives, and the gap between men and women must be closed.

“Especially concerning is that only 3% showed an awareness of how to improve their financial position, and many aren’t reviewing savings enough to be aware of the shortfall they may face.

“It’s time for the pensions industry to lead the way in helping them to find solutions and showing them that small steps can make a big difference.”