Women and pensions
Data from the 15th annual Women and Retirement Report1 suggests an increasing proportion of women are prepared for retirement, although it also highlights a continuing disparity in levels of pension savings compared to men.
Record female participation
The report shows the number of women contributing to a pension has risen by 15% in the last 15 years and concluded that 57% of women are now saving enough for retirement. In addition, the average level of savings amongst women has increased.
Retirement gender gap
Despite the undoubted progress, the gender pay gap means men are still saving far more into pensions than their female counterparts. Indeed, men typically benefit from an additional £78,000 in their pension pots at retirement, which is equivalent to 2.5 times the average UK household disposable income.
Challenges to saving
The study highlighted several groups who remain under-prepared for retirement, with lower and middle female earners amongst the least prepared. Additionally, over a third of women entrepreneurs were found to be saving nothing for retirement.
Such worryingly low participation rates partly reflect financial pressures faced by many women. As women typically earn less than men, a larger proportion of their income will inevitably be directed towards essentials such as property or childcare costs.
We’re here to help
Although an increasing proportion of the female population are now engaging with pensions, the research still suggests a worryingly high proportion of women have little or no pension provision. If you’re concerned about your retirement prospects, then get in touch with us. It’s never too late to get your retirement plans on track.
1Scottish Widows, 2019