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Findings show women at 30 have positive saving habits, with nearly four in 10 (39%) optimistic or very optimistic about short-term finances
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Tides set to change, with 40% expecting financial priorities to shift in the next 12 months due to plans to have children
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Concerns about longer term financial future also evident, with a quarter (25%) expecting a big shortfall in pension savings
Despite appearing confident about their short-term finances, a fundamental shift in priorities is causing 30 year old women to grow increasingly concerned about their financial future.
At the age of 30, nearly four in 10 (39%) of women feel optimistic about their short-term finances. These attitudes are reflected in their actions, with 30 year old women putting away an average of £1,790 in the last year – showing they are more than hitting the average savings target of £1,736 at this age. Yet despite positive signs in the short-term, this optimism appears to be marred by concerns about long-term finances.
With over half (52%) of babies born to mothers aged 30 and over, and 30.2 now the average age for women to have a child[1], women at 30 are on the brink of a major shift in priorities. Four in 10 (40%) expect their financial priorities to change in the next 12 months because they plan to start a family.
Perhaps as a result of concerns about the financial pressures of raising a family, more than a third (36%) feel pessimistic or very pessimistic about their long-term finances and nearly six in 10 (59%) about their retirement, compared to a UK average of just 34%. A quarter (25%) of women at 30 also expect to have a big shortfall in pensions savings.
As women settle into motherhood, these concerns become more acute. Nearly a third (30%) of women at 30 think they are likely to save more for retirement in the next 12 months than they do currently. By the time they reach the age of 35, when 56% of women have at least one child, other priorities take centre stage and the figure drops to just 12%. With the pensions gender gap currently sitting at 40%[2], the fears of experiencing a shortfall in retirement is still a reality for many women.
Findings suggest that concerns are also fuelled in part by a lack of engagement with pension saving. More than six in ten (66%) of women at 30 do not feel very comfortable managing their pensions, savings or investments, and a fifth (21%) have no idea of the extent at which their savings will meet their retirement income needs
Jackie Leiper, Retirement Expert, Scottish Widows, said: “It’s great to see so much financial engagement amongst women at the age of 30, but we must work harder to prevent those positive habits from dwindling when women have children. Our research clearly signposts a tipping point at this age, proving how important it is to support women as they learn to balance their growing list of priorities. More support – through better education about pension saving and more targeted engagement – is vital to ensure women are not worrying that having a family means sacrificing their own financial security.”
Sam Smethers, Chief Executive of the Fawcett Society, said: “Women take a big hit on their finances when they have children, both in the short and long term, as they often put the needs of their family before themselves. Whilst thinking about pensions at the age of 30 might feel premature, it is vital that women consider their own pension provision when they have children, rather than relying on a partner. Otherwise they risk poverty in retirement.”
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