Women are saving less than men for retirement

24 Oct 2019

According to an article in the Daily Mail, the average pension pot size of women in their 60’s is only a third of the size of men in the same age bracket.

Reasons for this crisis could be that women tend to give up work early on in their careers to go on maternity leave and raise children or care for family members. This results in no NI or private pension contributions during these early years of work, which could significantly harm their retirement income. Also, in the past women were earning less then men, which allowed for smaller retirement contributions.

More alarming stats are:

  • Women rely on their spouses for retirement income  
  • Three quarters of women over 60 are single, divorced or widowed 
  • There are 1.2 million women in their 50’s with no private pension savings at all

This shocking revelation suggests that young professional women need to relook at their retirement savings. They can no longer rely on partners to secure their retirement needs.

Possible solutions could be:

  • Contributing into a SIPP (Self Invested Personal Pension) You need not be employed to contribute to this plan. Minimum contributions are low and there are tax rebates given annually to sweeten the deal
  • Contributing towards a tax -free savings plan
  • Ensure that part of the family budget is set aside for your retirement savings – two pension pots are better than one during retirement
  • If you are getting on in the years, consider contributing more towards your pension to catch up
  • Try to cut down on luxury spending which allows for more savings
  • Ensure your pension contributions are automatically deducted from your bank account on pay day

It is best to chat to a deVere Acuma adviser as soon as possible to discuss the various options for saving towards 
your retirement. [email protected]

Starting a pension plan early in life allows for more contributions and compound interest to accumulate over time. 

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.