Women in their 40s and 50s have cited “Philip Green scenarios” as the reason for their lack of trust in pensions, it has been found.
According to a new report from Boring Money, the increased state pension age and “Philip Green scenarios”, relating to the BHS pension scandal, have tainted women’s’ trust in pensions and has decreased their engagement with pensions as a retirement savings product.
Increased costs of day to day living and concerns around the stability of the wider economy were also given as reasons by women as to why they do not trust or engage with retirement savings through a pension.
The research also highlighted that just 11.8 per cent of women in their 40s and 50s hold a stocks and shares ISA compared to 18.9 per cent of men in the same age bracket.
In addition, 14 per cent use a financial adviser while 30 per cent have chosen not to see an adviser despite having done so in the past. Rather, 35 per cent of women said that they use friends and family for savings advice and 43 per cent rely on comparison websites when it comes to financial decision making.
Boring Money managing director Holly Mackay commented: “These women are typically at the peak of their earning capacity and still have the time ahead of them to make a material difference to their long-term wealth. Yet, at the very time when they should be taking the plunge into the stock market, they are turning away from it. When we think about this against the backdrop of increasing divorce rates, a rising state pension age, a reduction in the availability of affordable financial advice and of course the ongoing gender pay gap, there has never been a more important time for the industry to strike up the conversation with its female customers.”
“The business models of most comparison websites abuse the trust placed in them. It is clear why so many time poor women use comparison sites as their go to source of financial guidance, but few understand their pay-per click mentality. We need to re-engage women with their finances and clearly demonstrate the financial benefits of investing in the stock market.”