Single life annuity leaves women at risk

Many women are financially at risk in retirement because of a failure to plan, according to research by Standard Life.

Half of married men purchase only a single life annuity and risk leaving their wives without a private pension income if the husband dies first.

Despite retired women living on average nine years more than men, only 38 per cent of women plan for their long-term finances, compared with 50 per cent of men.

Many women assume they will be able to carry on receiving their husband's private pension income if he dies first, but half of married men do not buy a joint annuity.

A single annuity may provide a higher income initially, but leaves the spouse at risk of losing out if their partner passes away first.

Mark Polson, Standard Life's head of customer management, said: "Women will most likely outlive men, yet are least likely to have a plan for their money in the future, creating a pension income gender gap."

Women are not only losing out through lack of coverage from annuity policies, but also due to having smaller retirement funds, according to research by Prudential. Men retiring this year will be on average £7,000 a year better off than women, reports the Telegraph.

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