UK - Women are more likely to be better off in retirement than men.
Only 52% of women workers face a ‘difficult’ retirement compared to 56% of men.
Latest research from the JP Morgan Fleming’s annual Pension Map of Britain 2002 reveals that over 9 million men are likely to receive less than 40% of their final salary as pension income in retirement, compared to 6.7 million women.
Some 48% are expected to have an ‘okay’ or ‘comfortable’ retirement, compared to 44% of men.
Furthermore, in the 20-29 year age group, women are expected to have a more ‘comfortable’ retirement - receiving over 50% of their final salary - than men of the same age. But around 59% of men in their 20s are expected to face a ‘difficult’ retirement compared to 43% of women. And 33% of women are expected to have a ‘comfortable’ retirement compared to only 27% of men.
Julian Lyne, relationship manager, JP Morgan Fleming, said: “Our key findings have shown that 54% of the working population are likely to face a ‘difficult’ retirement and it is more likely to be men more than women that will suffer the greatest hardship, particularly younger men.
“It seems that women in their ‘20s’ are better at saving more through their pension plans than young men of the same age, which is having quite an effect on the overall figures. At the other ‘extreme’ men and women who are coming to the end of their working lives are likely to be worst affected and women aged 60 plus are in the worst position of all.”
Some 76% of men and 80% of women faced financial hardship close to or during retirement. Less than 20% of women aged 60+ are expected to have an ‘okay’ retirement - receiving between 40-50% of their final salary.
In the 40-60 age bracket, men are expected to be more comfortable in retirement with women of the same age fairing less well. Around 40% of men aged between 50-59 will be ‘comfortable’ in retirement, against 35% of women. And 28% of men aged between 40-49 will be ‘comfortable’ in retirement against 24% of women.
Lyne added: “Regardless of the type of pension plan individuals have, the importance of pensions should not be underestimated. For members of company schemes, it is vital that employees appreciate the value they can offer. Even with difficult markets, employees must be encouraged to save for their retirement, or they will run the risk of financial hardship when retirement eventually comes.”
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