Study indicates that many women aren’t saving as much as men for later life

New research has indicated that while the number of women saving for retirement is increasing, the amount actually saved is considerably less than their male counterparts.

According to the Scottish Widows Women and Retirement Report, average retirement savings for women has increased by around 4.6 per cent since 2007/8, which equates to around £5,900 in additional retirement income each year.

During the same 15-year period the number of women contributing something to a pension pot has risen by 14.6 per cent. However, the average amount saved by men is still considerably more as they tend to retire with an additional £78,000 of pension savings.

Out of all groups, lower-middle female earners had seen the smallest improvement in their savings during the last decade, with just 47 per cent of women earning between £10,000 and £20,000 saving enough for retirement. In comparison, 65 per cent of women earning £40,000 or more are able to put enough away.

The report concluded that only 57 per cent of women were saving enough for their retirement, compared to 61 per cent of men.

Jackie Leiper, distribution director at Scottish Widows, says: “We’ve come a long way, but 15 years later there’s still an unacceptable gap between men and women.

“The groups who are often overlooked, such as lower‐middle income women, need more support to overcome the challenges they face in saving for the future.”

Links: Women and Retirement Report 2019