Females are not ready to retire and HR teams need to help them

Women need better financial education so they can save for retirement with a pension system that covers their later living expenses.

Women lag behind men in workplace pensions, according to a call from post-pension consultancy Barnett Waddingham.

According to the latest survey, 37% of women do not have a workplace pension, compared to 32% of men.

Barnett Waddingham states that this risks more women not being ready to retire and having to rely solely on state pensions.

Women need better financial education

Also, women are much less likely to make changes to their workplace pension investment strategies. While 10% less men, 85% of women say they don’t.

The findings are reinforced by previous studies showing that pension inequality widens significantly as people grow older. 38% of women over the age of 55 have only a reliable state pension. However, 83% of men over the age of 55 have more than a national pension.

Amanda Latham of Barnett Waddingham commented on the study, saying that “the proportion of women at risk of retirement due to lack of funds is still high, less than men.”

She called on employers and policy makers to provide better default strategies, stating that responsibility should not rest with the individual.

“Existing frameworks disappoint too many women when it is in the broader social interests for people to be well prepared for retirement.”

Pension fraud

Meanwhile, the call for education on the pension system rang elsewhere. This is because new measures have come into effect this week to protect those who are saving for their pensions.

“We are actually working on the tragedy of pension fraud to protect the hard-earned savings of pensioners,” said Guy Opperman, Minister of Pensions.

It happens after many scammers who have offered incentives that the scammers are “too good and not true”. These include free pension reviews, early access to pension cash, or other limited-time offers.

After that, Target was tricked into transferring his savings to a fraud scheme and was scammed from his savings.

However, this means that pensioners cannot be transferred without the intervention of a pensioner or system administrator.

Red flag

Trustees and scheme managers can prevent transfer requests by giving a “danger signal” when fraud is suspected.

You may also be able to post an “amber flag”. This will suspend the transfer until you can prove that the pensioner has received guidance from the Money and Pensions Service (MaPS).

The government says it is working closely with regulatory agencies, the Pension Fraud Industry Group (PSIG), and enforcement agencies. We want to protect pensioners and raise awareness of the dangers posed by malicious scammers.

Financial welfare and retirement specialist Jonathan Watts Ray said regulation is an important defense against fraudsters, but education on this issue remains necessary.

He states: “It’s important to know and understand the risks of someone giving up their guaranteed income, losing their protected retirement age, or penalizing a particular investment type.”

Watts-Lay called on employers to provide financial education and guidance to their staff, including workshops, digital tools and helplines.

Added: “This not only helps employees find fraud warning signs, but also helps them make informed decisions before entering a pension transfer.”

Females are not ready to retire and HR teams need to help them

Source link Females are not ready to retire and HR teams need to help them

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