Women’s pensions pots are 27.5 per cent smaller than men's, of those who shop around for a high guaranteed life income, according to LEBC analysis.
According to customers of LEBC's Retirement Adviser service, women have an average pension fund of £117,460, compared to men whose average pot reached £162,308. The two pots grew by 19.5 per cent and 20.6 per cent over 2017/18, respectively.
The data also found that just over a quarter of individuals who are shopping around are women, the proportion of women using the service fell from 37 per cent in 2016 to 25 per cent in 2017 and 2018.
LEBC director of sales and operations, Kirsty Turner, said: “For those with health or lifestyle issues, the potential loss of income is even greater, 67 per cent of our clients – men and women – are eligible for even more lifetime income, once factors affecting their life expectancy are taken into consideration.”
According to the findings, a healthy, non-smoker, can improve their annual income offered through a guaranteed lifetime income by up to 5.73 per cent, while those who fail to shop around could face potential losses of £7,179 in lifetime income.
Furthermore, a 65-year-old smoker would lose 13.23 per cent of annual income.
“We would like more women to be aware of the additional lifetime income they could secure simply by exercising their right to move their pension pot to another company; their failure to do so will only exacerbate the pensions gender gap.
“What is more, accepting the pension offered by their current pension provider condemns them to a lower standard of living for life.”