Record numbers of women failing to save enough for a pension

Fewer women than ever are saving for a pension due to the costs of raising children and looking after their elderly parents, according to a new report.

Data from Scottish Widows has found that 37% of all women across the UK have no pension provision.  40% of women are putting money aside which is down from 50% in 2011.

Reasons for the drop in savings varied with nearly 25% of the over 40s choosing to support their children financially over building up their pension fund.  Many older mothers are also having to find money to pay off debts or look after their ageing parents.

 Lynn Graves from Scottish Widows said;

“What we are increasingly seeing is that as women come out of their 30s and into their 40s there is a ‘sandwich generation’.

“Many of them still have dependent children but increasingly are having to look after elderly parents as well.  They are being squeezed on both sides.”

She urged women to act now to ensure they weren’t financially exposed in later life.

The report also highlighted a lack of financial awareness amongst women with a third of over 60 year olds having no idea what an annuity was despite being close to having to convert pension savings into one to provide a guaranteed income for the rest of their life.

Amongst younger women, 45% of 18-29 year olds believed that the state pension would provide enough for them to live on in retirement and were saving less than those married or co-habiting.

On average women who are saving manage just £182 each month compared to £260 for men, making a pensions gender gap of £1,000 in contributions each year.

The report comes a day after the Pensions Policy Institute claimed that so few UK citizens were saving for retirement that the Government may have to make it compulsory.

It also follows a growing number of surveys that show the strain placed on parents by their children who rely on them to fund house deposits and support them financially into adulthood. 

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