Just over half of female retirees say they are satisfied with their retirement income, compared with nearly seven in 10 men, according to new research from Quilter.
The wealth manager’s first Retirement Lifestyle Report, based on a survey of more than 5,000 UK retirees, highlights a persistent gender gap in retirement income satisfaction, financial resilience and state pension reliance.
Only 57% of women said they were satisfied with their household income in retirement, compared with 68% of men. The divide remains even among married couples, with 72% of married men content with their income against 63% of married women.
Women also depend more heavily on the state pension, which provides 32% of their income on average, compared with 27% for men. Among widows, reliance rises to 44%, ten percentage points higher than for widowers.
The report found women are more likely to fear financial insecurity and worry about inflation, with 46% saying rising costs make them anxious about maintaining their standard of living. That compares with 37% of men.
REASONS WHY
The disparities reflect the long-term impact of pay and pension gaps. The latest figures from the Office for National Statistics show that women in the UK earn 13.1% less than men on average, while Department for Work and Pensions data indicates a gender pension gap of around 48% for those aged 55–59. That equates to tens of thousands of pounds in lost pension wealth.
Quilter’s study also found that financial advice plays a major role in improving retirement satisfaction. Some 84% of retirees who receive financial advice said they were satisfied with their income, compared with only 41% of those who have never sought advice. However, women are six percentage points less likely than men to have received advice, suggesting an emerging gender advice gap.
Kirsty Anderson, retirement specialist at Quilter, said: “We are all familiar with the gender pay gap suffered by working women, but it is crucial to recognise that this inequality doesn’t end at retirement – it deepens. Our data underline that the financial disadvantages women face during their working lives translates into poorer retirement outcomes and lower satisfaction.”
She added that women tend to live longer, meaning their income must stretch further. “The compounding effect of lower pay, career breaks and reduced pension contributions leave many women more reliant on state support in later life,” she said.
Anderson urged couples to discuss their finances to ensure both partners have access to accounts and plans. “While these conversations can be difficult, they are essential – especially if one partner has lower income than the other. Seeking professional financial advice, or support from services such as MoneyHelper, can help couples put the right protection in place, ensuring peace of mind and financial security for the surviving partner.”
She also advised that unmarried couples should ensure they have up-to-date wills and lasting powers of attorney to protect their interests.
“Professional financial advice can be a powerful leveller,” she said. “Our research shows that people enjoy better financial outcomes if they receive financial advice. While it is not realistic to expect everyone retiring, or in retirement, to receive financial advice due to financial or other barriers, we maintain that receiving some sort of guidance is extremely important and should be available to everyone.”
She added that the Financial Conduct Authority’s proposal for a targeted support regime could help more people make informed decisions about their finances, leading to better outcomes in later life.
