Women nearing retirement age have been hit hard by the recession, taking a hit on pension savings.
Women nearing retirement age have been hit hard by the recession, taking a hit on pension savings. This is according to the sixth annual Scottish Widows UK Pensions Report. While saving for retirement has slowly been on the rise in recent years, the latest Report reveals that pensions savings have seen a dramatic drop since last year and are in fact at the lowest level since 2006.
Women aged over 50 have seen the index fall dramatically from 52% saving adequately in 2009 to 38% in 2010. The percentage of women over 50 not saving at all for their retirement has increased from 22% last year to 26% this year, suggesting that they are starting to give up on pensions savings altogether, says the report. This is in sharp contrast to men of this age, 60% of men over 50 are saving adequately for retirement.
Overall women are the big pension losers, lagging far behind men. According to the report, just 43% of women of all ages are saving adequately compared to 47% last year, whilst 52% of men are saving adequately this year compared to 59% last year.
Ian Naismith, head of pensions market development for Scottish Widows said: “It is a worrying sign that the group most vulnerable when it comes to retirement savings is women over 50. While women’s career patterns often make it hard to save consistently for retirement, this is the time when they should be saving the most.”
The report also reveals that 25% of women are non-savers compared to 19% of men whilst 29% of parents with three children or more are non-savers and 29% of self-employed people in the index group are saving nothing for retirement compared to 21% overall.
Unsurprisingly, high earners in the income bracket £30,000 to £50,000 are more likely to save for their future (56%).