Women 'left behind' in retirement money as quarter have 'never heard' crucial terms

UK women are lagging behind in their understanding of pensions compared to men. As a result, despite having a longer average lifespan, women often retire with less than their male counterparts. The Get Britain Pension Ready campaign has unveiled alarming data highlighting this issue, with a mere 8% of women claiming to understand pension terminology, compared to 21% of men.

A survey of 2,000 UK adults conducted this year revealed that nearly a third of women, or 29%, confessed to having "no understanding at all" about pension terminology. This is more than double the number of men admitting to similar knowledge gaps.

Worryingly, 27% of women disclosed that they had never heard of drawdowns, one of the most common methods of accessing your pension in retirement. Drawdowns allow you to withdraw some of your retirement savings either in regular payments or as a lump-sum, while keeping the remainder of your savings invested.

However, it does carry certain risks as you'll need to balance how much you withdraw with how much your investments can earn to avoid depleting your funds. A further 24% had never encountered SIPPs either, a self-managed personal pension offering a broader range of investment options than traditional schemes, with the flexibility to let providers or financial advisers make selections on your behalf.

This lack of awareness around crucial retirement planning and pension management could see women missing vital opportunities without realising their predicament. With pension poverty rates climbing, thousands may remain oblivious and without proper support.

The knowledge deficit isn't merely hitting women's wallets, it's inflicting psychological damage too, with one in four feeling too embarrassed about their limited understanding to seek guidance or unsure what queries to raise when receiving assistance. Sarah Lloyd, Commercial Director at Annuity Ready, commented: "This data shows that the UK's pension knowledge crisis is not just about age; it's about access and education.

"Women are clearly being left behind, and we're also seeing whole regions struggling to get the information they need to plan for retirement." Regional analysis revealed the East Midlands faces particular challenges, with 28% confessing complete ignorance about pensions, whilst only 9% of Welsh residents admitted similar gaps.

The West Midlands displayed the greatest confidence levels, with 25% claiming extensive pension knowledge, followed by London at 23%. However, it's not solely about confidence.

Previous research indicated that Gen Z feels they have a good understanding of pension products and their workings, but often lack genuine comprehension. To address the information deficit regarding retirement funds, theGet Britain Pension Ready campaign provides a variety of free insights and advice, encouraging people to educate themselves to sidestep pension pitfalls.

This includes a quiz to identify areas of knowledge deficiency and a checklist for those just beginning to plan for retirement.