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Eva Essential Blog- How Men and Women approach Planning for Retirement Differently

  • Author Avatar Susan Yates
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  • Category: Uncategorised

Eva Essential Blog- How Men and Women approach Planning for Retirement Differently

You should not act or rely on any information contained in this website without first seeking advice from a professional. Past performance is not a guide to future performance and may not be repeated. Capital is at risk; investments and the income from them can fall as well as rise.

Emotional differences

Men and women can approach retirement differently. Men often focus on rest, autonomy, and personal projects, women tend to prioritise social connections, personal fulfilment, and shared experiences.

These (admittedly very generalised) differences are also often the reason why men often struggle with retirement initially. Research shows that men tend to have fewer social networks and social support compared to women in retirement, which can make the adjustment more challenging. In addition, men may struggle with finding a new identity or purpose – the workplace often serves as a primary social environment for them, which means that leaving this behind can result in feelings of isolation and loneliness.

These emotional differences can influence retirement planning in several ways. Men may need to consider how they will maintain or develop new social connections after retiring. While women may want to lean into their existing social networks and consider how being better connected might help both to manage the transition.

Life expectancy and health considerations

Another critical difference in retirement planning between men and women relates to life expectancy. In the UK, women generally live longer than men, with the average life expectancy for women being around 83 years compared to 79 years for men. This means that women need to plan for a longer retirement period. It also means that they may need to factor in the cost of long-term care.

Men, while having a shorter life expectancy, often focus on ensuring that their retirement savings can support their partner if they were to die before them. This can mean arranging their pensions, life insurance, and other financial protection in a way that supports their spouse after they’ve gone.

Investment risks and time horizons

Because they tend to live longer, women typically face a longer time horizon over which investment risks can impact their retirement security. This can be both an advantage and a challenge. On one hand, women have more time to recover from potential market downturns, allowing them to take on slightly more investment risk earlier in retirement. On the other hand, the same time horizon means that the impact of poor investment choices or market volatility can be magnified over the years.

For men, the shorter time horizon generally means a more conservative approach to investment in the later stages of life. However, this approach must be balanced with the need to ensure that their retirement savings can support not only their own retirement, but also potentially provide for their spouse’s longer-term needs.

Articles on this website are offered only for general informational and educational purposes. They are not offered as and do not constitute financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional. Past performance is not a guide to future performance and may not be repeated. Capital is at risk; investments and the income from them can fall as well as rise. Eva Wealth Management for Women is a trading style of Clarus Wealth Ltd, an appointed representative of Best Practice IFA Group Ltd which is authorised and regulated by the Financial Conduct Authority. Clarus Wealth Ltd is entered on the Financial Services Register (http://www.fsa.gov.uk/register/) under reference 581586. The guidance and information contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.