Severe lack of ‘Girl Power’ when it comes to pensions
Women are increasing relying on their partners to fund their retirement, a study by pension provider Scottish Widow has revealed.
In a survey of 5000 women, more than a third have no pension. Those who do are saving, on average, almost £1000 less each year than their male peers while 25 per cent of women in their 40s are expecting their retirement to be funded predominantly by their partner’s income.
There are several reasons that may sit behind this increasing gender gap including career breaks and shorter working hours when they have children. There are also pay disparities between genders. Women also appear to prioritise current expenses - holidays, property costs and providing financially supporting children - ahead of their long term finances.
But whatever the reasons for this deficit the fact remains an increasing number of women are heading for a financial fall come retirement and may need to find an additional funding source. Richard Espley, Head of Equity Release, talks options:
“This increasing retirement gulf between the sexes is worrying. It is understandable why women are prioritising their short term finances and clearing such debt as mortgages before retiring is in itself good financial planning. However this does not disguise the fact that many women could be in for a tough time in their twilight years.
“Equity release is one option available to homeowners looking to plug any financial gap. By allowing you to release a proportion of equity from your property whilst retaining the right to live there, equity release offers many homeowners an attractive alternative to downsizing.”
Content correct at time of publication