Women ‘value financial advice less than men’

Women are likely to be hit hardest by the budget retirement finance reforms because they are less likely than men to seek or value financial advice and less aware of the products and services available to them according to research from MGM Advantage.

The research found that only 40 per cent of non-retired women aged 55 and over say they would value expert financial advice when retiring, compared to over 52 per cent of men in this age group.

But women are more worried than men about not having enough money to make ends meet in retirement, with 49 per cent of UK women saying this is a concern compared to 39 per cent of men.

The research found 48 per cent of women in this age group say they are unaware of the products and services available to them to generate retirement income, compared to 34 per cent of men. Women approaching retirement underestimate their life expectancy by an average of 10 years, considerably higher than men’s underestimation of five years, according to MGM Advantage.

MGM Advantage pensions technical director Andrew Tully says: “The recent reforms have given retirees more freedom and increased their choices, but this means decisions are more complex so understanding the options available is more important than ever. There is a real risk that without expert advice, people approaching retirement, especially women, may receive a poorer outcome than before the reforms.

“We need to ensure anyone taking decisions about their retirement takes advantage of the guidance that will be available with well signposted hand-offs to financial advice.”