You are here: Home - Retirement - Retirement planning - News -

Older women behind on pension saving

0
Written by:
26/05/2021
There is a significant gender gap in pension savings, new research from Legal & General has revealed, with women over the age of 50 found to have about half as much in their pension pot as men of the same age.

According to the study, the average woman over 50 has £43,014 in their pot, compared to £82,311 for men over the age of 50.

The contrast is clear when looking at small pots too, with a quarter of women sat on pension pots of less than £5,000. That’s markedly higher than the 15% of men who have the same amount saved for retirement.

Looking beyond the state pension

The state pension is a fundamental part of retirement planning for many of us, though on its own it’s unlikely to result in a comfortable standard of life once we give up work. Indeed, previous studies have shown that large numbers of us overestimate just how generous the state pension is.

The L&G report highlights data from the Office for National Statistics, which shows that men below state pension age are more likely to have an active private pension than women, at 56% compared to 51%. 

Last month it emerged that there are currently thousands of pensioners who are receiving no state pension at all.

The study also finds that women are well aware of the risks of not having enough saved for later life. More than half (56%) of women admitted feeling they would not have enough to fund their desired personal income in retirement, compared to 43% of men. 

Despite this they are less likely to be aware of the current values of their pensions, with more than a third (34%) in the dark, up from 27% of men.

The L&G report follows earlier studies which found that single mums in particular have been locked out of pension schemes during the pandemic.

Burdens placed on women

Andrew Kail, CEO of L&G Retail Retirement, said there was a significant difference between the pension wealth of men and women, to the point that there were real concerns about the strength of women’s finances when they hit retirement.

He continued: “We know there are a multitude of factors that influence these figures, from the gender pay gap to the increased likelihood of women working part-time or taking career breaks when compared to their male colleagues. We also know that the pandemic has likely increased this disparity due to the unpaid caring responsibilities that typically fall to women.

“We need to do more to address this financial inequality but also to address the root causes that influence it, specifically the significant burdens our society places on women outside of their careers.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

PayPal closing down Money Pools

The ability to create new Money Pools will be disabled from 30 September, while existing Money Pools will be s...
PayPal closing down Money Pools

130 million old £1 coins still out there: what to do if you have one

An estimated 131 million old round £1 coins have yet to be returned to the Royal Mint, nearly three years afte...
130 million old £1 coins still out there: what to do if you have one

How to a write a winning property offer letter

You’ve viewed the perfect property but there’s likely to be stiff competition from other buyers. Here are five...
How to a write a winning property offer letter

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week