With people living longer due to higher living standards and better healthcare, people’s pension savings are having to stretch further. This is an especially worrying thought for women, who have on average £106,000 less in their pension pots than men when they reach retirement.
While women have around £51,000 saved to see them through retirement, men have accumulated an average of £156,500 – leaving many women worried about financing the years ahead1. So, what’s behind this gender discrepancy? It can be attributed to a number of causes:
Three times as many women work part-time than men. Lots of women therefore don’t meet the £10,000 threshold to qualify for auto-enrolment schemes, and so are missing out on pension contributions from their employer2.
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In fact, 36% stop working altogether, while 44% return to work on reduced hours, greatly diminishing their saving capacity3.
According to a recent survey, money is a ‘no-go’ topic for 16% of women. This makes it hard for some to discuss their pension openly and get the advice they need4.
There are things you can do to take control of your pension. Take time to understand your current situation, what you’re contributing and how much you have saved. An Independent Financial Adviser can assist you in finding the most suitable pension scheme for you, helping you maximise your savings and getting you on the way to a comfortable retirement.
1Now: Pensions, 2019
3The People’s Pension, 2019
4Fidelity International, 2019