Two-thirds of women aged between 50 and 59 (66%) admit that they don’t know how much they have saved for their retirement, according to new research from TPT Retirement Solutions, a leading workplace pension scheme serving over 2,600 organisations. Just over half of men (51%) in this age group also don’t know how much is saved in their pensions. The research looks at how prepared people in their 50s are for retirement.
Despite not knowing exactly how much they have saved for retirement, 60% of women in their 50s worry they are not saving enough. The research found that among those who know how much they have saved, the average man in his 50s has saved £17,014 more than the average woman.
TPT’s research found that rising energy bills are a significant burden to pension saving for 71% of women. Two-thirds (66%) also struggled with increasing food bills and 25% with higher mortgage repayments. As a result, almost half of women in their 50s (48%) do not expect to be able to afford a moderate retirement based on PLSA Retirement Standards.
The research also shows the cost-of-living crisis will force many women to work for longer to afford retirement. More than four in ten women in their 50s (46%) expect to work for longer, typically planning to work for an additional five years to cover the cost of retirement.
Helen Taylor, Corporate Services Director of TPT Retirement Solutions, comments: “Coping with the rising cost of living has become a major challenge for many people, and our research shows women are struggling more than men. While inflation and energy bills may fall later this year, the cost-of-living crisis is likely to have a long-term impact on how prepared people are for retirement. We believe that early planning for retirement can play a crucial role in easing the worries of savers. As most women in their 50s plan to retire in their mid-60s, they still have time to build their pension savings. However, the earlier you start increasing pension contributions, the easier it will be to build a more substantial savings pot. By providing a secure and sustainable source of income in retirement, pensions can help individuals and families plan for the future, manage their finances, and maintain a decent standard of living.”
|
