Scottish Widows have today published the latest edition of their annual Women and Pensions Report.
In their ninth annual report, they note the large gender divide when it comes to saving for retirement. This gender gap currently stands at more than 25%.
As has been the case in previous years, the gender pay gap has made it harder for women to consider saving for retirement.
A continued squeeze on living costs has also made it more difficult for women to consider pensions savings.
What the report really highlights is a problematic lack of knowledge when it comes to retirement planning.
According to the report, almost half of young women believe that the State pension will help ensure a reasonable standard of living in retirement. Put simply, it won’t.
There is some good news for women within the report, however.
Women earning £30,000 to £50,000 a year are contributing more towards their retirement than men, on average. They are saving £236 per month compared to £224 per month for men.
Slightly more women than men have a cash savings account and Cash ISA. Because the best retirement planning often involves multiple sources of wealth to fund later life, this is an encouraging finding.
What all women need is advice about retirement planning.
It is never enough to rely on State pension provision or even your husband’s pension provision, assuming you know how much this is.
Do get in touch to find out more about how we can help you establish your financial goals, prioritise your spending and keep you on track to achieve the income you need in retirement.
