A new report from Fidelity International has found that women tend to save and invest, on average, far less than their male counterparts when preparing for their retirement.
Their findings also show that 21 per cent of men aged between 18 and 34 years old have sought help from a financial adviser, compared to just 12 per cent of women.
Women still typically earn less than men during their lifetime, in part due to them often acting as carers for children and they get paid less.
However, due to COVID-19, this issue is likely to become more prevalent, as an estimated 78 per cent of job losses have affected women.
Unsurprisingly, 54 per cent of women are concerned about retirement savings. This is backed up by The Pensions Policy Institute findings that women in their 60s will on average retire with £51,000 of savings compared to men who on average will retire with £156,000.
Jackie Boylan, Head of FundsNetwork for Fidelity International said: “Our twenties and thirties can be vital years for building up longer-term savings as well as hitting financial milestones. Financial advice can help us to think ahead, for both short and long-term goals and navigating any obstacles, and for women, this is arguably even more crucial.
“The gender pension gap is all too real, and now we have a whole generation of women set back even further by COVID-19: job losses, taking on more of the caring responsibilities as well as the domestic burden. Women should feel empowered to seek financial advice from a younger age, but there are too many barriers in the way from cost to a lack of confidence – meaning women are coming to it much later than men.”
Hannah Mainstone, a financial adviser at Milsted Langdon said: “It is still noticeable that financial planning remains a male-dominated arena. When advising a mixed-sex couple, it is often the man who will take the lead with the woman sometimes willingly deferring because they view finances as overly complex or to be an area which they do not fully understand.
“Confidence increases with understanding and education is an important part of the ongoing relationship with our clients. We understand that everyone is different and it is our responsibility to get to know our clients, including their understanding and knowledge of investments and other financial matters, to ensure that our language is appropriate when we’re discussing their finances and plans for the future.”
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