Men Prioritise Saving for Retirement, Whilst Women Place More Importance on Paying Off Debt

LONDON, England, July 4 -- Willis Towers Watson, a risk management, insurance brokerage and advisory company, issued the following news release:

35% of women believe they will continue to work past the age of 70 in comparison to just 29% of men. Regardless of this extra measure, only 33% of women feel confident they have enough resources to live comfortably throughout retirement compared to nearly half of men (49%) according to research from LifeSight, Willis Towers Watson's UK DC Master Trust. The Global Benefits Attitudes Survey (GBAS) 2017, which looked at retirement expectations, found that saving for retirement is not a key financial priority for women, who say they are more focused on paying off debt and funding ongoing housing costs than men.

Despite the lack of confidence women have in the adequacy of their retirement resources, the research* finds that saving for retirement is still not one of their top five financial priorities. Women instead focus on the general costs of day to day living (73%), housing costs (60%) general savings (58%) and paying off debt (45%).

47% of women agree that their employer's retirement plan meets their needs, compared to a slightly higher figure for men (51%). Yet, a work retirement plan is the primary means of saving for retirement for 74% of women, in comparison to just 66% of men. This suggests that, in spite of recognising their work retirement plans might not be sufficient, women are more reliant on them for retirement income than men, who are more likely to have other sources of income in retirement.

Harriet Hayward, client director for LifeSight, said: "The research highlights an important issue for the pensions industry. Whilst employers need to help their entire workforce understand the benefits of both their workplace pensions and long-term savings more generally, it is clear that companies need to do more to cater for women. The industry can help by offering more tailored, clear communication around women's specific life paths, helping them to understand the impact of part-time work and career breaks, and the best way to plan and budget when it comes to retirement savings."

However, there are tools in the wider financial market that could be used to help women better understand their retirement savings that are not currently utilised by the pensions sector. The research showed that only a third (35%) of people use the internet or mobile apps to access information on their retirement plans, compared to over two-thirds (69%) for banking or credit cards and half (49%) for savings and financial investments. Yet, the use of mobile apps could simplify pension fund information, and make retirement savings more accessible for busy women with varying financial concerns.

Hayward went on to say: "Times have changed, and as other industries embrace technology, the pension sector is falling behind. Pension providers need to offer more robust and effective communication methods, which will go a long way to increasing employee understanding and engagement. Optimising new technology and modernising communication to make pensions more relatable is essential to help improve the retirement outcomes of not just women, but everyone."

About the research

*Retirement Expectations is part of the 2017-18 Global Benefits Attitudes Survey which explores individuals' attitudes to their health and retirement benefits. The survey took place between July and August 2017 and was completed by 2,824 employees at medium and large private sector companies in the UK.

About Lifesight

LifeSight is an independently managed and fully outsourced DC pension solution for the UK market, providing best-in-class pensions expertise that gives members a personalised cost-effective experience to improve outcomes. Willis Towers Watson has extensive experience of transitioning pensions to a range of pooled structures in the UK and through its master trust programme abroad which includes offerings in Germany, South Africa, Belgium and the Netherlands. Learn more at www.lifesight.com.

About Willis Towers Watson

Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has more than 40,000 employees serving more than 140 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas - the dynamic formula that drives business performance. Together, we unlock potential.