Women look at pension gap worsening through recession

Tuesday, 30 June 2009 11:42

British women are falling behind in saving for retirement and the recession is worsening the situation.

Research by Scottish Widows reveals the UK has stepped up its level of pension savings and average savings - but there is a far from uniform picture emerging.

Across the board 54 per cent of people are saving adequately.

But the percentage of women under 50 not saving at all for their retirement has increased from 14 per cent to 22 per cent.

Only a third of self employed people are saving adequately, and a further third are not saving at all.

Ian Naismith, head of pensions market development at Scottish Widows, said: "It seems that many women over 50 have almost given up on saving for retirement.

"The impact of the economic downturn is likely to make this group even more vulnerable when saving for retirement and there needs to be more done to better encourage everyone to save for the future."

He added those that are able to save should be saving 12 per cent of their main income.

A total of 19 per cent of people are now not saving at all, while 27 per cent are either seriously or somewhat under-saving.

Those most likely to be saving for retirement were men, with 65 per cent savings enough, along with those in the public sector and high earners.

Mr Naismith said: "Year on year it is the same groups that are winning the great pensions race - in particular those working in the public sector.

"But with companies increasingly closing defined benefit schemes and employers struggling to provide adequate pension provision for their employees this trend may decrease over time.

"So it is really up to the individual to take their pensions savings into their own hands and make sure they are adequately preparing for retirement."

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