“Flowers and chocolates will be the obvious gifts this Mother's Day but, while appreciated by all across the country, will they improve her financial future or retirement options? The pension’s gender gap is well known and a professional financial makeover for Mums on retirement planning could provide an astute and practical gift from forward thinking offspring this Mothering Sunday.
“The BlackRock Investor Pulse survey* revealed that on average women would like an annual retirement income of £20,255 and think a pot of £114,900 will fund it. In fact, they would need a pot of £405,100 so are underestimating the amount they need by £290,200. Yet, only 54% of women have started to save for retirement and nearly half (47%) are not confident they are saving or investing enough to ensure that they will live comfortably throughout it. Perhaps understandably then, saving for retirement at a younger age was advice that almost half (45%) of women said they would give to their younger selves.
“Saving for retirement earlier is an important topic that should be discussed with younger generations. A quarter of women (25%) have said that having a retirement plan in place would make them feel more in control of their financial futures.
“There are a few simple steps that women who have not started to save for retirement should consider such as; decide how much income they would like per year in retirement, have a plan, make the most of tax efficient vehicles like ISAs and pensions, and think long-term about their money. This last point is particularly pertinent with younger generations who can take into account their long investment horizon and seek out effective ways in which they can put their savings to work in order to provide an income.”
*BlackRock Investor Pulse survey: BlackRock research conducted from 24 July to 23 August 2014 amongst a nationally representative sample of 27,500 individuals identified as financial decision-makers, in 20 countries, aged 25 to 74 years old. Total sample for the UK is 2,000.
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