Women live longer – and need a tailored income strategy

After several decades working in this industry, I’ve seen first‑hand how women’s experiences with money, work, and family shape their – and their family’s – long-term financial security.

I often find myself thinking about the freedom and confidence we all want as we move through life. The sense of autonomy we enjoy in our early twenties deserves to stay with us. Ideally, it should evolve and become even more meaningful as our families grow and as we look ahead to retirement.

Yet, for too many women, that feeling slips away.

Something we’ve been highlighting for years, and that has real consequences, is that women typically retire with smaller pension pots but live longer than men. A 55‑year‑old woman today lives (on average) three years longer than a man of the same age – with double the chance of reaching 100¹. And yet only 24% of women are currently on track for a comfortable retirement, compared to 36% of men².

These aren’t just statistics. They reflect choices and life moments that women recognise all too well. Many take career breaks, step back from full‑time work, or prioritise saving over long‑term investing, which they feel less confident about.

Sometimes these choices are made from necessity, but often women simply haven’t been given the advice or support to take a confident, long‑term view of their financial wellbeing.

It’s a society-wide issue, with a recent report from the University of Edinburgh reinforcing Scottish Widows Women & Retirement Report’s call for the UK pensions system and financial advice sector to address the gap between men’s and women’s pension wealth.

And even though many women have built healthy pension pots, there is still the important question of how to turn those savings into an income that lasts.

With that aim in mind, it makes sense that annuities are rising in popularity again³ but it’s not just down to today’s better rates. One of the persistent myths I come across is that annuities are rigid and outdated, yet they’ve quietly transformed into something far more flexible and feature-rich than many people realise.

For women who’ve had fragmented career patterns, taken time out, or built pension wealth differently to their partners, annuities can be a powerful aid for long-term security.

Annuities remove the uncertainty of market fluctuations and there’s no need to worry about managing investments or keeping an eye on withdrawals which can be a worry with drawdown.

They can be tailored with:

• Escalation options to help protect income against inflation.
• Dependants’ benefits such as spouse’s or partner’s income continuation.
• Guarantee periods that ensure income continues for a set time.
• Value Protection on all or a portion of the initial capital outlay.

In many ways, annuities in payment mirror the best features of the defined benefit (final salary) pensions we still view as the gold standard: stable, predictable, lifelong income.

With lower pension savings, women, are undoubtedly more exposed to financial dependency.

At Scottish Widows, we’re constantly encouraging women to prioritise their own wealth care to secure their long term financial security.

A critical part of that is open, proactive discussions with partners about retirement finances. Because many couples build their wealth jointly – across pensions, savings, and property – retirement planning should also be planned jointly, so that both partners understand the income that will be available in retirement, consider dependants and intergenerational wealth transfer.

When thinking about annuities, taking time to consider dependants’ benefits really matters. It is one of the simplest ways to make sure no one is unintentionally left financially vulnerable later on.

Modern annuities can give women a powerful mix of reliability, flexibility and long lasting value — exactly what is needed to navigate longer lives, often-smaller pension pots and the uncertainty of any market swings.

With a little wealth care and open planning with partners, women can build an income that protects them and their families. And truly, what better way to approach later life than with real confidence, clarity and security.