Women over 55 receive, on average, almost £6,000 less in annual pension income than men of the same age, according to research by Oxford Risk, which found that women over 55 are also more likely to face financial shortfalls than men.

The research revealed that, on average, male respondents expected to receive £23,700 annually from their pensions, while women expected just £18,000, representing a £5,700 difference.

Despite the research revealing that women over 55 plan to spend £3,500 less than men, they still face a shortfall of £1,200 per year, whereas men expect a surplus of £1,000.

In addition to this, more than a third (36 per cent) of women over 55 are unsure how much they might receive from their pension each year, compared to just 20 per cent of men of the same age.

The research also identified different approaches to funding retirement, with women more likely to consider part-time work (41 per cent) than men (30 per cent).

Women are also more likely (21 per cent) to use property income to fund their retirement than men (18 per cent).

However, men are more likely than women to rely on self-invested personal pensions as 25 per cent of men said they do compared to 16 per cent women.

Similarly, 23 per cent of men rely on investment portfolios, more than twice the 10 per cent of women who said the same.

Beyond pensions, men over 55 have, on average, £209,000 saved in cash and other investments, compared to £128,000 for women.

Oxford Risk said that these disparities in overall savings further contribute to financial inequality during retirement.

The findings also pointed out that half (50 per cent) of women and over half of men (53 per cent) rely on cash surpluses to fund their retirement.

Over the past three years, the Financial Conduct Authority (FCA) has prioritised effective cash deployment as part of its Consumer Investments Strategy.

Oxford Risk suggested that this reliance on cash could undermine these efforts, emphasising the importance of improved support and guidance to encourage more effective investment decisions rather than the emotional security of underperforming cash reserves.

Commenting on the figures, Oxford Risk head of behavioural finance, Greg Davies, 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."

Davies argued that 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,” he added.

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