Women live longer and need to consider financial security
Did you know women centenarians in the UK outnumber men aged 100+ by nearly five times?
In 2020, a total of 12,420 women celebrated their 100th birthday, compared to just 2,700 men.
These figures highlight the importance of gender differences in life expectancies and emphasises the need of to take longevity into account when making financial plans for retirement.
Interestingly, women have been shown to have smaller pensions, with nearly four fifths of men over the age of 75 having some form of private pension, compared to just over half of women. Of those private pensions, men had average savings of £135,700 - almost double that of women at £69,800.
Allowing for the possibility that one partner may outlive the other, making sure financial provisions have been put in place to cover this eventuality is key.
I would like to encourage women in particular to consider how their income might change if their partner dies before them. Given only just over half of women aged over 75 have some form of private pension, they’ll want to understand what proportion of their partner’s pension will still be paid to them, or if they’ll have to rely on their own savings and assets.
The latest changes to social care means that more people will need to spend their wealth to meet care needs in later life. Combine this with smaller pension savings, women would benefit from a clear understanding of their overall financial position and some later life planning – taking into consideration their varied sources of wealth, from pension savings to property.
If you would like to explore this further or take a review of your finances, please get in touch with Banner Jones Wealth Management and we will be happy to help.
Sources: Just Group and Office National Statistics