Results from the LEBC Retirement Adviser’s customer base show that fewer women than men use its Open Market Service to improve their retirement income.

The proportion of women using the service has fallen over the last three years from 37% in 2016 to 25% in 2017 and 2018.

The size of women’s pension pots is also 27.5% smaller than those of the men who use its services to try to secure a higher guaranteed lifetime income. 

Women had an average fund of £117,640 and men some £162,308.

In 2017-18 women started to catch up, with the average size of pension pots used to buy a guaranteed income product by both men and women growing at 19.5% for women and 20.6% for men respectively.

LEBC says that healthy, non-smoker, 65-year-olds can improve the annual income offered by up to 5.73% per annum by using 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 faced a potential loss of £7,179 in lifetime income, says LEBC.

A 65-year old smoker would lose an extra 13.23% per year of income, costing them £796 a year on average.

Kirsty Turner, director of sales & operations at LEBC said: “For those with health or lifestyle issues, the potential loss of income is even greater.  Some 67% 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.”