Women not saving enough for retirement

20 February 2020

Women and pensions – recent research 

Failing to save for your retirement is not a trap that only women fall into, but recent research reinforces previous studies that there are more women than men who don’t have adequate provision for their retirement. 

A study of more than 3,000 people aged 50 and over by Sunlife found that a third of the women didn’t have a private pension, compared with a fifth of men. Only 13% of women said they were confident they would have enough money in their pension to fund their retirement, with 30% admitting they were looking to rely on their partner’s pension. 

These findings reinforce an earlier Sunlife study, which found than one in four female homeowners over 55 had no private pension provision, compared to only one in 20 male homeowners in the same age bracket. 

A study by Scottish Widows of pensions saving by self-employed women has shown similar trends, with a third of female entrepreneurs saving nothing for their retirement. The Women and Retirement’ report puts the number of women business owners at a record 1.7 million, but says 600,000 of them are not currently saving for when they stop work and fewer than half are saving the minimum recommended level. 

The good news from Scottish Widows, however, is that when female entrepreneurs do save adequately, they put aside more of their income, on average, than other groups of workers and businessowners. 

It’s great to see that some women businessowners are setting an example by saving more of their income proportionately than other groups of workers, but worrying that so many women have not made adequate provision for life beyond work,” commented the founder of 55+ Equity Release, Jan Johnson.

Growth in property wealth among the over 55

Those approaching retirement who are fearful their pension may not be enough, may find some comfort in analysis by the Office for National Statistics in their most recent Total Wealth In Great Britain Report.

Published in December 2019, it shows the role that property wealth plays in contributing to overall wealth among the over 55s and over 65s.

The same report also shows that, while total property wealth generally goes up the richer you are, it contributes more proportionately to overall wealth for those who have more average total wealth: 

The analysis by the Office for National Statistics in their most recent wealth report gives encouragement to people who are not sure whether they will have enough funds to realise their retirement dreams; their figures show that over 55’s overall wealth – including their property wealth – may be more than they think. This gives the possibility for releasing some of the wealth tied up in their homes to help them live the retirements they want, whether that’s releasing funds to help pay for everyday bills or going on a holiday of a lifetime,” commented Jan Johnson. 

Releasing property wealth to fund your retirement dreams needs careful consideration. Our expert advisers will be happy to meet you for an initial, no-obligation consultation and will give you honest advice to help you decide whether it may be the right solution for you. 

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