Aegon UK’s Post

NEW from IWPR: The Retirement Income Gap Leaves Women Aged 65+ at Higher Risk of Poverty than Men At 32.6 percent, the gender gap in retirement income—the sum of pension and Social Security income—was 4.0 percent larger than the 28.0 percent gender gap in median earnings in 2021. Women’s account balances are the main driver of this gap. Read more on this from our latest Quick Figure: https://lnkd.in/e34QxHHN

Between 1977-2021, the share of the US workforce covered by pension plans fell 13 percentage points while income inequality nearly doubled, according to new research from NCPERS. And when income inequality rises, economic growth falls. Join us on July 10th for an on-demand webinar to learn more about the broader social and economic impact of policies that reduce pension benefits. https://lnkd.in/eVQGweEJ During the webinar, lead researcher, Dr. Michael Kahn, will share key insights from the just-released report, highlighting how reduced pension access has contributed to the alarming rise in income inequality. He'll be joined by Josh Bivens, chief economist at the Economic Policy Institute, who will shed light on the adverse effects of rising income inequality on the economy, demonstrating how increasing income disparities impede economic progress.

I was deeply saddened to read this recent article by Alina Khan in FT Adviser: https://lnkd.in/gEYvcU6Q It’s alarming to see that so many women across the UK are unsure whether they will have enough financial security in retirement. This highlights a critical issue that we must address as a society, and particularly within the financial planning profession. Women face unique challenges in retirement planning, often due to career breaks, part-time work, or caring responsibilities, which can result in lower pension savings and financial uncertainty in later life. As someone passionate about shaping the future of financial planning, I believe it is our duty to empower women with the knowledge and tools they need to secure a comfortable and confident retirement. We must continue to raise awareness, provide education, information, and work together to address these challenges head-on. Every woman deserves the peace of mind that comes with knowing her financial future is secure - don't you agree? #FinancialPlanning #RetirementPlanning #EmpowerWomen #FinancialSecurity

No progress at all - uncovering the stark reality - women still have less than half the pension savings of men at retirement. This figure hasn’t shifted in the three years I’ve been monitoring it at Legal and General. Our latest figures, updated to December 2023 show the pension gap by age, and gender for more than 5 million of our customers. The gap will be a hard one to crack, and the work to do so can’t all rest on women’s shoulders. The reason there is a gap isn’t because women don’t like to save. Societal and structural inequalities work against us, making it a lot harder for us to build up an equitable pension savings pot. We must all work to remove or reduce the current structural barriers that exist, whilst also encouraging individuals to (1) Save more – within their own affordability constraints, and (2) Engage more – building up their own level of knowledge and empowerment of pensions. Combatting a general lack of knowledge, lack of trust and lack of perceived relevance are all key barriers that need to be dismantled in order to build better engagement.  

This is quite poignant when understanding the gender pension pay gap. A lot of people might argue that women nowadays have the same opportunities as men but the reality is when it comes to very normal life events like having children, or having to look after elderly relatives it is the women of the family that must take career breaks to do this. With career breaks comes huge gaps in being able to save for their retirement via state or private pension contributions. No one is here to look after you on retirement, we have to take matters into our own hands and make our own preparations. Drop me a message to understand more. #financialplanning #finalsalarypension #definedcontributionpension #definedbenefitpension #fiscaldrag #taxallowances #ukpensiondeficit #ukpensioncrisis #ukinterestrates #financialsecurity #ukpensionplanning #ukpensionsforexpats #brexitoutcomes #genderpaygap #waspiwomen

https://lnkd.in/ejHSXtJ8 Did you know? Prudential’s 2024 Pulse of the American Retiree survey found women are saving less for retirement yet living longer than men! Let's close the gap for the future. #RetirementSavings #FinancialPlanning #WomenEmpowerment #Longevity #InvestInYourFuture

💡Looking for a way to make a difference this International Women's Day? Take action to close the gender pension gap by increasing your pension contributions. Data from over 27,000 Profile Pensions customers reveals a concerning reality: the gender pension gap is wider than ever - 76%! Let's bridge this gap by increasing our contributions and empowering women's financial futures this #InternationalWomensDay. 💰🚀 Read more on our blog 👉https://hubs.li/Q02nn05Z0 #InspireInclusion #IWD24 #breakthebias #pensiongap #paygap #genderpensiongap #InternationalWomensDay [Capital at risk. Past performance is not a guide to future performance.]

"At 32.6 percent, the gender gap in retirement income—the sum of pension and Social Security income— was 4.0 percent larger than the 28.0 percent gender gap in median earnings in 2021. Women’s account balances are the main driver of this gap. The retirement account balance gap for women aged 55–64 was 38.7 percent, while the Social Security benefits gap was 24.7 percent, and the pension income gap was 18.7 percent (Figure 1). The role of pensions and the Social Security progressive formula are equalizers of the retirement gap. Additionally, women are more likely than men to rely on Social Security as their primary or sole source of retirement income."

How worrying is it that 52 per cent of women in the UK do not believe they will have enough money to sustain their income in retirement? Scary! This is something I am passionate about and I raise awareness in the hope women take action. As financial planners we have a real opportunity to make a difference. The findings, from Fidelity International's Women and Money study, has seen women are prioritising their most immediate financial needs, putting their longer-term financial future at risk. Women face unique challenges in retirement planning, often due to career breaks, part-time work, or caring responsibilities, which can result in lower pension savings and financial uncertainty in later life. I deliver a lot of financial wellbeing workshops in the workplace as I want to make a difference. I believe it is my duty to empower you with the knowledge and tools they need to secure a comfortable and confident retirement. Everyone deserves the peace of mind that comes with knowing their financial future is secure. Don't you agree? https://lnkd.in/e4Yu9xGe #FinancialPlanning #RetirementPlanning #EmpowerWomen #FinancialSecurity

Nobody should need to worry about whether they can enjoy the lifestyle they want after a lifetime of work. Financial certainty comes with a plan. Plan your life and be clear in what you can expect so you can enjoy the 30 years of not working. 25 years as a child/student, 35-40 years work, 30 years of non working life. If you stopped work today do you know what your non earned income would be in retirement? If you do and you think it looks good how secure is it, and how efficient is it. Is it really enough? Pension Living Standards have this guide on how much you will need. https://lnkd.in/eq7jPQR3