Two thirds of young women are worried about running out of money in retirement, research from Scottish Widows has found.
However, the research found some have chosen to opt out of workplace pensions to keep up with day-to-day costs.
The study also revealed almost a quarter of women between the ages of 22 and 29 said they would be frustrated not to be able to retire by the age of 60.
The survey of more than 6,000 people highlighted a difference in pension savings between men and women from the early twenties.
While 19 per cent of men started paying into a pension by the age of 22, just 14 per cent of women had done the same.
Jackie Leiper, Scottish Widows managing director, said: “Our research shows a significant gap between the expectations of women, and the action taken to meet those expectations.
“Alarmingly, 10 per cent have opted out of their workplace pension, meaning they are missing out on compound interest gains and crucially, the ‘free money’ that comes with employer pension contributions.
“Opting out of your employer’s pension scheme is tantamount to taking a pay cut.”
Of those that opted out of being automatically enrolled into their employer’s pension scheme, 29 per cent said it was because they could not afford to keep up regular pension contributions, while 14 per cent said they would prefer to spend the money now.
Ellie Austin-Williams, of This Girl Talks Money, said: “It’s scary to see the contrast between retirement expectations and the reality that many women in their 20s will face, but it isn’t surprising.
“Speaking to my community online, it’s clear that young women want to invest in their financial future but the cost of living crisis has made it more difficult than ever to prioritise their pensions.
“The challenge is that paying into a pension regularly from the start of your career is essential, especially given the boost provided by a workplace pension. Plus, it’s crucial to closing the gender pension gap which can grow to £100,000.”
Scottish Widows said the difference between pension values of men and women is 10 per cent at age 25, and 50 per cent at the age of 50.
Leiper added: “The hard truth is, by the time these women reach the end of their working lives, they may face a much harder retirement compared to those who have consistently contributed.
“Compounded further by often having to take enforced career breaks. The good news for anyone in their twenties though is that time is on their side.”
She said urgent action is needed to support women with the steps to engage in their pension early on in their careers.
tara.o'connor@ft.com
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