Pension saving can be influenced by a number of factors, including work security, time taken off from employment and the funds a person has at their disposal. However, research undertaken by Legal and General Retail Retirement has shown the particular financial challenges facing women over 50. In total, one in four women in this age group have less than £5,000 in their pot – a low amount which means individuals may struggle.
“We know there are a multitude of factors that influence these figures, from the gender pay gap to the increase likelihood of women working part-time or taking career breaks when compared to their male colleagues.
“We also know the pandemic has likely increased this disparity due to the unpaid caring responsibilities that typically fall to women.
“We need to do more to address this financial inequality but also to address the root causes that influence it, specifically the significant burdens our society places on women outside of their careers.”
Women, and indeed all those concerned about their pension pot, however, can take action to remedy the issue.
In addition to a pension pot, there are a number of other assets such as property wealth or cash savings which can help in later life.
Finally, people should think about the kind of retirement they want, and how much it is going to cost.
While there is no “one-size-fits-all” approach, people will want to understand if they wish to work for longer, or retire early.
Similarly, looking at what a person wishes to achieve in retirement, whether that be travel, buying a new property, or helping family members, will be important.