Women aged over fifty-five are being urged to act now to maximise their savings, after research revealed that they are twice as likely to rely on the state pension in retirement.
According to recent research, a quarter of women aged fifty-five and over, despite relying on the state pension in retirement, will not qualify for the full basic state pension, compared to ten percent of men – and it isn’t thought that the gender gap will close until 2018.
It has also been revealed that thirty-one percent of those planning to retire this year have no private pension in place; whilst those who did feared that it would not provide for them in retirement. Additionally, a fifth of those who participated in the research count their partner’s pension provision as part of their own retirement plans.
A spokesperson behind the research, said: “Many women who are over the age of 55 will fail to qualify for the full Basic State Pension as they have spent much of their working lives earning money under more rigid accrual rules.
“The closure of the pensions gender gap is happening much too slowly. Women need to take control of their finances.”
Following the research, women are now being urged to top up their National Insurance contributions, and where possible pay in to company pension schemes where possible.
For those who are concerned about their financial planning for the future, and their future pensions and want input on how they can still maximise their pension income our team here at Milsted Langdon can assist.
Steve Horton is a Chartered Accountant and a Chartered Financial Planner who specialises in helping clients to manage their pensions and investments