A third of women aged over 50 are relying on the state pension for their retirement income – but this alone won’t be enough for a minimum standard of living, according to SunLife.
Research by the over 50s specialist found that 4.4 million women over the age of 50 are at risk of poverty in retirement.
SunLife found that while 27% of over 50s have no private pension savings, women are more than 50% more likely to be relying solely on the state pension than men.
SunLife’s second annual Life Well Spent report found that about 2.4 million (20%) men over 50 and 4.4 million (33%) women are relying on the state pension alone to fund their retirement.
According to Retirement Living Standards, for a ‘moderate’ retirement an individual needs £23,300 a year – more than twice the state pension which is about £10,600.
Even a ‘minimum’ standard of living would need an annual income of £12,800, more than £2,000 more than the state pension, meaning 6.9 million over 50s are at risk of poverty in retirement.
SunLife’s research found that, of those over 50s who have only the state pension to fund their retirement, nine in 10 (92%) admit to being worried about money. More than eight in 10 (85%) are concerned about the rising cost of living, more than half (55%) have a ‘fear’ of sudden unexpected costs, while four in 10 (39%) are worried specifically about ‘running out of money’ during retirement.
Even amongst those who do have a private pension, 86% have financial fears, with 69% worried about the cost of living, and 36% concerned about running out of money during retirement.
Those who are yet to retire are the most concerned. Four in 10 (43%) over 50s still working say they are worried they will not have enough money to fund their retirement, rising to 44% of those who do not have any private pension savings.
In comparison, 27% of those who are already retired are worried about running out of money, rising slightly to 28% of those currently living on the state pension alone.
SunLife’s study also found that 18% of working homeowners aged 50 or over have no private pension savings, while 17% of retired homeowners are relying on the state pension alone.
Mark Screeton, CEO at SunLife, said: “It is really worrying that so many over 50s – particularly women – are relying on the state pension alone to fund their retirement. That level of income is just not enough to sustain even a basic standard of living, let alone a lifestyle that most people would call ‘enjoyable’.”
