Women and Pension Planning

Women and Pension Planning -Why One in Five Are Handing Over Their Financial Future.

New research reveals a worrying trend: one in five women are leaving responsibility for their pension to their partner, and a quarter are entirely disengaged from their long-term financial planning.

A recent study by Hargreaves Lansdown, a leading investment platform, found that 12% of individuals delegate their long-term finances to their partner, but women are twice as likely as men to do so.

“There are some jobs we hand over to our partner because they’re more interested or we just can’t face it,” said Sarah Coles, personal finance analyst at Hargreaves Lansdown. “But while it doesn’t matter who takes the bins out, handing over control of your long-term financial planning comes with serious risks.”

The Hidden Dangers of Delegating Your Pension

Delegating your pension planning may seem convenient, but it can be expensive, especially for women.

“Being disconnected from your long-term finances, especially your pension, means you risk unpleasant surprises in retirement,” Coles warned. “If your partner isn’t as financially savvy or engaged as you assume, the consequences can be significant.”

In the event of separation or divorce, this financial detachment becomes even riskier. Without clarity on pension values and investments, it’s easy to be disadvantaged in a financial settlement. Understanding joint assets, including pensions, is crucial for achieving a fair outcome.

🔑 5 Key Life Moments to Reconnect With Your Pension

To avoid losing control of your financial future, reviewing and engaging with your pension regularly is important. Here are five pivotal life events when you should reassess your retirement planning:

1. Women and Pension Planning-Changing Jobs

New employment often brings a new pension scheme. Always check the contribution levels, fees, and investment options. Default funds may not align with your risk tolerance or retirement goals.

2. Moving Into a Higher Tax Bracket

When your income increases and you pay a higher rate of tax, it’s the perfect time to review your pension contributions. Higher earners can benefit from increased tax relief on pension savings, a missed opportunity if you’re not paying attention.

3. Having Children

If you or your partner takes a career break to raise children, it’s a critical time to revisit your pension. Consider how your contributions may change and how to balance your joint retirement savings for long-term security.

4. Women and Pension Planning- Divorce or Separation

Relationship breakdowns are emotionally challenging, but they’re also financially pivotal. Knowing the value of each partner’s pension can be the difference between an equitable split and a long-term disadvantage.

Read about navigating the unknown

5. Turning 50

This milestone is your cue to get serious about retirement planning. At age 50, you’re eligible for free guidance through Pension Wise, a government-backed service. It’s also a smart time to speak to an independent financial adviser to make the most of your final working years.