New freedoms ‘help women close savings gap’

The government's new pension freedoms have helped more women save for retirement effectively. 

This is according to Aegon research, which shows that seven per cent of women are now financially ready for when they finish work, representing an increase of two per cent compared to April 2015. 

With this rise, women are now only three per cent behind men when it comes to retirement readiness.

Some 15 per cent of women were found to have saved more because of the new pension freedoms, while the figure was 18 per cent for men.

Most females now expect to retire at the age of 64 and believe they will need an income of £40,700 to be comfortable when they finish work. Aegon warned this figure is unrealistic, as it would require a savings pot in excess of £1 million, which exceeds the new pension lifetime allowance.

The organisation also warned of the threat of fraud, with significant numbers of both men and women revealing they have been approached by criminals. Some 13 per cent of men and nine per cent of women have received a text message offering a free pension review or pension investment opportunity, while for cold calls offering a free pension review or investment opportunity, the figures were 23 per cent and 16 per cent respectively.

Kate Smith, regulatory strategy manager at Aegon, commented: "Industry reforms such as auto-enrolment and pension freedoms are working, and they are already having a positive effect on the saving behaviour of women in particular, with more of them ready for the retirement they want than ever before. 

"But the challenges women face when planning their retirement remain complex, and it is vital that we continue to support those starting out or still on their savings journey."