Women more generous than men with their windfalls

WOMEN are more likely than men to use their pension nest eggs to help family members.

In a survey of people who took advantage of rules allowing the over-55s access to pension savings, women were found to spend it on an event such as a daughter’s wedding. Men were more likely to use the money to invest in bricks and mortar.

The poll by Fidelity International found that 22 per cent of women used their windfall to help a family member pay for a lifetime event such as a wedding, helping them buy a property or pay a university debt. Just 11 per cent of men took this path.

Some 21 per cent of men used the money to invest in a second property such as buy-to-let or renovate the family home, compared to 13 per cent of women. And 18 per cent of men invested in stocks and shares, versus 7 per cent of women.

The figures seem to suggest that warnings from former pensions minister Sir Steve Webb that people might use pension freedoms introduced two years ago – allowing the withdrawal of a 25 per cent tax-free sum – to splash out on sports cars were overblown.

Fidelity investment director Maike Currie said: ‘When the pension freedoms were first mooted, there was a lot of noise about the slightly outlandish things people might do with their new found freedom.

‘Our survey shows women are far more likely than men – nearly twice as likely, in some cases – to support the family with a life event, help children with education fees or provide the finance for family members wishing to get a foot on the property ladder.’