Prudential Reveals Research On The Importance Of Women's Retirement Plans
Released on: November 02, 2011, 4:24 am
Prudential has revealed that nearly half (46 per cent) of
women over the age of 40 who live with a partner have no pension of
their own, according to new research into couples' attitudes to
The extent of women's reliance on a partner's pension and the State is not
the only shock finding from the research, which also highlights that many UK couples
could be sleep-walking into retirement poverty as they have no idea what pension
income they will need to live on.
More than half (56 per cent) of couples aged over 40 have not worked out how much
money they will need to live on in retirement, with two in five (40 per cent)
admitting to having no financial plans in place for life after work.
British couples also seem reluctant to discuss with each other the finances that
will support them in later life. One in five couples (20 per cent) admit to never
having discussed joint retirement financial planning, while only half of those who
have already retired made a joint decision about the annuity they bought.
Vince Smith-Hughes, head of business development at Prudential, said: "Pensions may
not seem like the most exciting topic for a couple in their forties to be
discussing, but couples who have not put time aside to discuss their retirement
income plans run the risk
of spending their later lives worse off than they had expected."
In regard to retirement planning,
Smith-Hughes stressed how important it is for women to discuss their future finances
with their partner, and preferably with a financial adviser too. According to
Smith-Hughes, women who don't engage in these discussions could find themselves in
financial trouble, especially if they outlive their loved one.
Smith-Hughes continued: "People may feel they can't afford to significantly boost
their retirement savings in the current financial climate, but taking even the
smallest of steps can have a positive impact. Joining a workplace pension scheme,
considering a joint life annuity, so the income will continue after one partner
dies, and topping up National Insurance contributions are all options which can
increase income in retirement. These crucial issues should be discussed between
couples and, in turn, with their financial advisers."
- ENDS -
Note to Editors
Research by Vision Critical, on behalf of Prudential, was conducted among a sample
of 2,003 people, including 501 retired, 324 semi-retired and working part-time, and
1,178 aged 40+ working full-time and living with their partner/spouse.
'Prudential' is a trading name of The Prudential Assurance Company Limited, which
is registered in England and Wales. This name is also used by other companies within
the Prudential Group, which between them provide a range of financial services
including retirement planning,
life assurance, and advice on pensions.
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