Pensions planning in the UK: A gendered challenge

Abstract

Gender differences in the accumulation of pension savings are well documented. Work in this field has concluded that while differing lifetime work profiles (and family history) explained much of the difference, other factors such as pension knowledge and confidence in decision-making, may also be significant. This research, commissioned by the Fawcett Society and funded by Scottish Widows, explores some of these factors through the use of 30 semi-structured interviews and a focus group with women (aged 24-39) about their attitudes and motivations towards pension saving. It concentrates on discussions around pension knowledge, advice and decision-making, and identifies challenges in relation to women's pension knowledge and the use of male 'role models' in making decisions. The article then explores potential policy mechanisms to enhance women's pension saving for retirement, including the manner in which information and advice is provided and strategies to improve confidence in pension decision-making.

Women millennials’ perceptions of pension savings through the use of autoenrollment in the UK pension system

“…Perhaps understandably given lower average wages, Prabhaker (2017) found that women were more likely than men to cite lack of affordability as a reason for opting out of auto-enrolment. Women also pay more attention than men to childcare costs in decisions to opt-out (Foster & Heneghan, 2018).…”

“…Interview participants also discussed further ways of raising awareness of pensions and auto-enrolment, such as its use in schools. While pensions and savings have recently been introduced into the national curriculum (in 2014), it is important to evaluate the effectiveness of these developments and whether this teaching is equally accessible to females (Foster & Heneghan, 2018).…”

“…Under-saving is not always recognized by individuals, in part because of a lack of understanding and awareness of how pension schemes operate (Foster & Heneghan, 2018;Pettigrew et al, 2007). Furthermore, it is common for people's pension saving not to match their expectations, especially in pension schemes where the fund received is heavily dependent on investment performance (Webb et al, 2014).…”

“…There is currently limited research which focuses on public attitudes to pension reforms and auto-enrolment (Foster, 2017;Inland Revenue 2015;Pettigrew et al, 2007;Prabhakar, 2017), and even less research which focuses specifically on younger women and their pension behavior (Foster, 2012;Foster & Heneghan, 2018;Prabhakar, 2017). Given that pensions are based on levels of contributions during the life course it is also important to comprehend 7 attitudes, knowledge, expectations and savings habits in relation to auto-enrolment in the earlier stages of people's working lives, especially within a changing pension policy context (Bryan & Lloyd, 2014).…”

United Kingdom

“…(Grady 2015). This model obscures the fact that women's work histories and position in the labour market are different to those of men, largely due to their unpaid caring responsibilities (Foster and Heneghan 2017). The feasibility of women being able to reach the full 35 years of credits is questionable (Grady 2015;Vickerstaff and Loretto 2017).…”