Almost half of women over 50 think they will struggle financially (Photo: Metro.co.uk)
A new study has found that women have an average of 83% less in their retirement pots than men.
In addition, nearly half of women over 50 think they will face financial difficulties after retirement.
These figures are taken from the UK Pension Report, which lists the total pensions and savings of all members from their total pension fund.
According to their research, women have an average of £113,520 left over for retirement compared to £206,990 for men, a difference of £93,470.
They also found that 21% of men actively take steps to save for retirement, while only 11% of women do so.
Ashley Agwuncha, head of Money Medics, says this sad statistic is not surprising, especially when you consider that women often take on childcare, which means they have less time to work and contribute to the pension system.
She told the Met: Another report, published by Now Pensions in December 2020, found that women are most at risk from the pension gap.
She added that many women, especially single mothers, are not eligible for automatic enrolment, which should be a way of encouraging more people in the UK to save for retirement.
Women are falling through the cracks as a switch is made to an automatic enrolment system designed to improve the country’s pension system.
Ashley says society’s prevailing view of women and finance contributes to the problem.
Some limiting societal beliefs keep women from engaging in long-term financial planning, such as retirement – for example, that women are less able to handle money than men and that we are more likely to spend money on emotion.
Another limiting belief is that our commitment to family is inherently primary and therefore career is secondary, which can limit our earning potential during our working lives.
She believes that there is a great need for financial planning because of the great dependence of fathers on their wives.
In addition to retirement planning, Ashely suggests considering investments (which offer the same benefits as retirement planning) and reducing debt.
She says it’s important for women to have a safety net, whether it’s finances or retirement, because if you stop making money, how are you going to take care of yourself?
The same study shows that almost a quarter of Britons have postponed their retirement plans as a result of the pandemic and 17% have had to use their savings earlier than planned.
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