Research reveals women’s retirement money worries

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Women are more worried about running out of money during retirement compared to men, new research* from the Liverpool office of wealth manager and MWOTY category sponsor Investec Wealth & Investment (UK) shows. 

While fear of running out of money in retirement is rising among all people in the North-West with nearly half (46%) concerned their savings will not last them through retirement, more than half (54%) of women surveyed are concerned about how long their money will last, compared to only 44% of men.

Around 46% of men who are not worried about running out of money in retirement say it is because they have a final salary pension scheme – compared to just 38% of women who have this.

The study by Investec Wealth & Investment (UK), part of Rathbones Group, among people with stock market investments including pensions, paints a bleak picture – around 61% of those living in the North-West are concerned they do not have enough money for retirement. This is quite a bit higher than the UK average of 56%.

Women are more worried than men that they do not have enough money for retirement. Almost two thirds (61%) of women surveyed are concerned, with 18% of these very concerned they do not have enough money for retirement. This compares to just over half (53%) of men surveyed, with 14% of these very concerned they do not have enough money for retirement. 

The Investec Wealth & Investment (UK) study shows around three out of four (75%) retired people living in the North-West say their monthly income has dropped since stopping work. There is a similar pattern between men and women, with 76% of women saying their monthly income has dropped since stopping work, compared to 78% of men who have experienced this.

Those living in the North-West who have yet to retire are realistic about what will happen to their incomes in retirement – 76% expect their monthly incomes to drop on retirement and just 4% expect it to increase with 4% saying it will stay the same. The other 16% did not know.

Marion Reilly, Senior Director – Wealth Planning for Investec Wealth & Investment (UK) in Liverpool, said: “It is worrying to see that there are high numbers of people in the North-West concerned about running out of money in retirement and not having enough money saved. This is particularly high in Liverpool, Manchester and the North-West compared to the rest of the UK.

“Some of it may be explained by people worrying ahead of their actual retirement and that is a good thing if it encourages them to save more and to seek professional financial advice. However, ideally people should start saving as early as possible, as the sooner you begin to save, the bigger your pension pot is likely to be. The larger your pension pot is at retirement, the more options and flexibility you will have when you come to draw an income. Therefore, we would urge anyone concerned about retirement savings to talk to a financial adviser.” 

*Investec Wealth & Investment commissioned independent research agency Viewsbank to interview 1,065 UK adults aged 18-plus including 568 who have stock market investments between January 26th and January 29th, 2024

 

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