1 in 5 younger women failing to save for retirement

Nearly one in five (19%) of women in their 30s are failing to save for retirement, according to a new report. Women of all ages are less likely than men to be saving for retirement. This is particularly pronounced among single mothers, according to new research from Scottish Widows. Four in ten single mothers do not have a pension, in comparison to 29% of women in general. Due to increased childcare costs, housing and related-costs, single parent households typically spent more (relative to their disposable income) than couples. Around 87% of singe parents' disposable income was spent on childcare, housing and related costs, compared to 67% for two-parent households, leaving them little room to save. Women were also less likely to have other sources of retirement income beyond the State Pension, with only 30% planning to rely on a company pension. This is resulting in growing gender gaps in pension wealth, with the average man aged 65-74 having over £250,000 of pension assets in comparison to under £150,000 for the average woman of the same age. Two thirds of women are worried about running out of money in retirement in comparison with just over half of men. Scottish Widows said the report demonstrated the uneven effects of cost-of-living increases which were exacerbating inequalities and negatively impacting the retirement prospects of UK women. Jackie Leiper, managing director of workplace savings, Scottish Widows, said: “Despite increased reporting, stubborn gender pay gaps persist for women across the UK. Our research shows that single mothers are much more likely to be exposed financially, cutting back in ways that jeopardise their wellbeing. “Current economic conditions are making it harder than ever to fix the deep inequalities that underlie the pensions gap, with the retirement savings of women deeply impacted by key life events such as divorce or motherhood. Providers, regulators and employers must collaborate urgently to address this crisis – from reconsidering the auto-enrolment threshold to far greater investment in childcare support – to help the most vulnerable in the near term.” • Scottish Widows’ Women and Retirement 2022 report surveyed 5,025 UK adults between 8 March and 15 March 2022.

1 in 5 younger women failing to save for retirement

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