Only a quarter of women are shopping around for their retirement income, according to national IFA LEBC.
Customers of LEBC pension advice business The Retirement Adviser are far more likely to use its whole of market service to find the best retirement income solution if they are male.
LEBC says the proportion of women using the service dropped from 37 per cent in 2016 to 25 per cent in 2017 and 2018.
Women’s pension pots are also 27.5 per cent smaller on average than male customers’ pension pots, according to the IFA.
Female clients had an average fund of £117,640 and men had an average fund of £162,308.
LEBC points out that not shopping around can lead to a loss of over £7,000 of lifetime income.
“Healthy, non-smoker, 65-year olds can improve the annual income offered by up to 5.7 per cent per annum, simply by exploring the whole of market option.
“With an average fund of £117,640 and an average life expectancy of 20.9 years, those who do not shop around face a potential loss of £7,179 in lifetime income,” it states.
LEBC sales & operations, Kirsty Turner, says: “For those with health or lifestyle issues, the potential loss of income is even greater. Sixty seven per cent of our clients – men and women – are eligible for even more lifetime income, once factors affecting their life expectancy are taken into consideration.
“We would like more women to be aware of the additional lifetime income they could secure simply by exercising their right to move their pension pot to another company; their failure to do so will only exacerbate the pensions gender gap. What is more, accepting the pension offered by their current pension provider condemns them to a lower standard of living for life.”