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University of Edinburgh study warns that women are retiring with far smaller pension pots than men, due to structural inequalities
A new report calls for an overhaul of pensions policy and financial advice to address the current pensions gap, which sees men accumulating 75 per cent more in their defined-contribution (DC) pension pots by age 60 than women, according to DWP figures.
The report, from the University of Edinburgh, supported by wealth manager, Evelyn Partners, calls on the financial-services sector to recognise hidden systemic, social and situational factors preventing women from saving and planning for later life, rather than focusing on their perceived ‘lack of confidence’ in financial planning.
The author of the report It’s Not About Confidence: The Hidden Forces Shaping Women’s Financial Futures’ is Emily Shipp, a psychologist and associate of the Edinburgh Futures Institute (EFI).
Shipp said: “For too long, the ‘confidence gap’ narrative we see in financial advice and media reports has masked the real systemic, situational and social factors that result in the pensions gulf.
“Mental load and time scarcity operate together. Women are more likely to carry the ongoing cognitive labour of anticipating and coordinating care, while also spending significantly more time on unpaid work. These pressures reduce both the mental bandwidth and the available time needed for sustained engagement with long-term financial planning.
“Historically, financial advice and pensions policy have centred on typically male, linear career trajectories and financial goals, rather than the multi-phase, care-interrupted lives many women navigate.
“Redesigning pensions policy and financial environments to better serve more varied priorities and life courses would better serve all genders as we move towards longer, multi-phase lives.”
DC pensions require decision making around fund choice, contribution levels and consolidation that demands active engagement beyond a 'set and forget' approach, which is little understood by the general population, the report highlights, and contributes to lower overall pensions wealth.
Emma Sterland, chief financial planning officer at Evelyn Partners, said: “We welcome this important new report from EFI. Its thought-provoking insights challenge entrenched narratives around women and wealth, shining a light on the complex structural barriers that women face as they build their financial security over a lifetime.
“As the founding partner of EFI’s Compassion in Financial Services Hub, which launched early last year, Evelyn Partners is proud to support research that helps to foster a more inclusive, sustainable and compassionate financial system.”
The report was produced by the Compassion in Financial Services Hub (CFSH) at EFI, supported by Edinburgh Innovations, the University of Edinburgh’s commercialisation service.
Pictured: Emily Shipp
