Women saving less for retirement than men

Posted on November 2nd, 2010 | Categories - Retirement

Retirement savings amongst women of all ages are lower than men.

Men are setting aside more cash for retirement than women.

Women are failing to think about saving and pensions leaving them ill prepared for their futures, according to the annual Scottish Widows Women and Pensions Report.

The research sampled over 5,000 adults and showed that almost half of women over the age of 50 are failing to take the necessary steps to ensure that they experience a comfortable retirement, which is a rise of 8% on last year’s survey.

The sharp disparity between the amount that men and women save was also highlighted in the poll. Young women between the ages of 18 to 29 save just over half of the £7,709 saved by men. Younger women save an average of £49 per month, which is £60 less than men.

Over 40% of young women consider pensions ‘risky’ – a third of the female participants admitting to not having a pension or thinking seriously about saving into one. The four in ten women who do have a pension do not know the specifics of their pension scheme.

Ian Naismith, Head of Pensions Market Development at Scottish Widows, said: “The findings relating to this year’s report paint a worrying picture. Women are saving less than they were a year ago and younger women are saving the least, which is especially worrying as savers tend to stick to habits developed when they are young. In previous years we have seen younger women becoming more financially independent, but as that group moves into their 30s it appears that those coming behind are not continuing the good work”.

He continued: “Attitudes need to change and the major disparity between male and female saving habits needs to be resolved or even more women will face poverty in their old age”.