New findings from behavioural finance experts, Oxford Risk, reveal that women over 55 face a dual challenge in retirement: they anticipate lower pension incomes and are more likely to experience financial shortfalls compared to men of the same age.
On average, male respondents expect to receive £23,700 annually from their pensions, while women anticipate just £18,000—a £5,700 difference. Despite planning to spend £3,500 less than men, women still face a shortfall of £1,200 per year, whereas men expect a surplus of £1,000.
The research also highlights that more than a third (36%) of women over 55 are unsure how much they might receive from their pension each year, compared to just 20% of men. This uncertainty, combined with lower savings, adds to the financial pressures many women face in retirement.
In addition to pensions, men over 55 have £209,000 saved in cash and other investments on average, compared to £128,000 for women—a difference of £80,000. These disparities in overall savings further contribute to financial inequality during retirement.
Oxford Risk’s research also identified distinct approaches to funding retirement. Women are more likely to consider part-time work (41%) and property income (21%) to fund their retirement than men (30% and 18%, respectively). Men, however, are more likely to rely on self-invested personal pensions (25% compared to 16% of women) and investment portfolios (23% compared to 10%).
Finally, nearly half of women (50%) and 53% of men rely on cash surpluses to fund their retirement, according to the survey. Over the past three years, the FCA has prioritised effective cash deployment as part of its Consumer Investments Strategy. However, this reliance on cash undermines those efforts, highlighting the need for better support and guidance to promote smarter investment choices over the costly emotional comfort of underperforming cash reserves.
Table shows how men and women aged 55-plus currently plan to fund their retirement from one or more options.
| Men | Women | |
| State pension | 82% | 80% |
| Cash savings | 53% | 50% |
| Defined Contribution Pension | 43% | 42% |
| Part-time work | 30% | 41% |
| Defined Benefit Pension | 39% | 34% |
| Property | 18% | 21% |
| Self-invested personal pension | 25% | 16% |
| Investment portfolio | 23% | 10% |
Dr. Greg B Davies, head of behavioural finance at Oxford Risk, said: “Our research highlights significant disparities between women’s and men’s financial security in retirement. Despite planning to spend less, many women face substantial financial gaps, with lower savings and less certainty about their retirement income.
“Advisers and wealth managers have a vital role in bridging these gaps by helping individuals optimise their retirement strategies. Behavioural finance tools provide personalised insights that reflect clients’ unique attitudes and preferences, empowering them to make better financial decisions.”
