One in four women over 35 have no retirement savings

One in four women over 35 have no retirement savings

One in four women over the age of 35 have not saved anything towards their retirement, according to research from HSBC UK.

Just over half of women aged over 35 (56 per cent) have saved up to £1,000 for their pension pot, despite the majority of retired females (94 per cent) saying they need up to £30,000 a year to fund their lifestyle.

The survey was conducted by YouGov on behalf of HSBC UK, and questioned 1,048 retirees and 2,695 non-retirees between the ages of 18 and 55.

One in 10 of the retired women surveyed by HSBC said they could not afford their household bills, and a third said they could not cover the cost of running a car.

Just under a third (29 per cent) of those questioned said they were not financially comfortable

Emma Chee, head of wealth management strategy at HSBC UK, said women are living longer so need to ensure their money lasts as long as they do.

“Despite the state pension increasing this year, the threat of rising inflation and the increased cost of living means we need to take control of our own financial destiny,” she said.

Chee added that it’s never too early to start planning for your retirement. 

“Whatever your age and needs, having a plan in place can be a welcome reassurance. 

“We never know what life may throw at us so it’s important to save and invest alongside a pension to allow for a comfortable retirement.”

Research published this week (March 7) found that women are struggling to keep up with men in the UK when it comes to saving for their retirement.

Women have been found to be twice as reliant on their state pension as men are, according to Barnett Waddingham.

The firm called for policy intervention after discovering that 27 per cent of women are depending solely on their state pension, compared with 15 per cent of men.

The so-called ‘pink tax’, meanwhile, is obstructing women from investing in their long-term savings, according to PensionBee research. 

The cost of being a woman was perceived by 14 per cent of female survey respondents to be hampering their ability to save into pensions.

Earlier this month, a group of companies across the pensions industry lobbied the government for the removal over the £6,240 lower earnings limit - the earnings threshold that allows employees to qualify for certain state benefits, including the basic state pension.

This threshold, Aviva observed in an earlier submission to the Work and Pensions Committee inquiry on pension freedoms, disadvantages part-time workers - a group that is disproportionately made up of women.