If you don’t have a pension, read this. If you think you might need one.. read this.

There is little point in fighting for equal rights in relatively speaking, marginal areas, if we don’t address the basic fundamentals.

Normally, when a product provider releases a ‘study’, I treat it as a glorified sales hack.  Not so the latest Scottish Widows annual Women and Pensions Report, released this morning. It shows the latest pension savings position for women and, for the first time, breaks it down by age group.   It highlights that just 40% of women, compared to 49% of men, are preparing adequately for later life – a drop from 42% last year and 50% in 2011.

I have long argued that whilst service personnel complain about changes to AFPS (rightly so, what is happening to the military pension is shocking, but unavoidable in my opinion), the impact on a partner making no provision for retirement is just as bad.. but it slips under the radar.

These past few weeks have been working on developing a new offering which would see a simple, cheap and straightforward way for partners (mainly women) to get access to a good quality pension.  There is much that I cannot do; I cannot simply sell a pension like Clare can sell her book for instance and I am required by legislation to ensure that you buy something suitable, fit for purpose and relevant; you have as many rights as I have legal obligations.  It might be that really, you wouldn’t benefit from having one.

But as an Independent Financial Adviser who owns the business, I can hammer down the cost through refining the process.  Anyone interested?  If so, add a comment or pipe up on Clare’s facebook page.  Anyway, which group (below) do you fall into?  Key findings from this year’s report:

18–21 year old women 

  • 81% don’t have a pension scheme
  • 30% aren’t saving for a pension as they don’t understand them

22–29 year old women

  • 54% don’t have a pension scheme
  • 83% don’t know what an annuity is

30–39 year old women

  • 21% expect to rely on their partner’s income in retirement
  • 35% are unsure how automatic enrolment affects them

40–49 year old women

  • 23% prioritise supporting their children over retirement  saving
  • 24% expect to rely on their partner’s income in retirement.

http://www.scottishwidows.co.uk/documents/generic/2013_women_and_pensions_report.pdf

Please remember that not having a pension carries real risk, but so can having one.  There are a number of areas that you should know about before investing.  Make sure you choose wisely and make sure you are aware of all potential pitfalls and do as much as possible to avoid them.  Be informed!!

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