53% older women say pension pots ‘not enough’ to retire

As female workers prepare for their retirement, more than half believe they will have to keep working beyond the state pension age to ensure they can cover the cost of living.

Workingwise.co.uk reported that 53% of women aged 45 and over are concerned that their pension pots would not be enough for them to be financially independent, reported the Guardian.

The older worker advice website carried out the survey to gauge women’s economic situations as they approach retirement.

It identified the impact things such as career breaks or working part-time can have on female employees and their savings for the future.

Of the 1,300 surveyed, 83% of women shared they had worked part-time for at least one year during their career, while 27% had done so for more than a decade.

On that note, around three-quarters of respondents agreed that working part-time or taking a career break were responsible for the reduction in their pension payments.

64% added that they had chosen to stop their pension payments, when working reduced hours or when they were out of the workplace.

But it seems that caring responsibilities have impacted the career progression for most women, as six in 10 stated that this was the case. Meanwhile, more than a quarter said that the menopause had impacted their career.

Gillian Nissim, founder of Workingwise.co.uk, noted that there is a clear gender pension gap within organisations. For example, Nissim pointed out that the difference in pension income between female and male savers has been estimated at around 38%.

Nissim explained: “Women are more likely to have ongoing caring responsibilities that mean they will reduce their hours, work part-time or require flexible working.

“These career decisions are then coming back to haunt women’s pensions in later life.”

Due to this, the pension expert is urging for changes regards the gender pension gap within organisations, noting that women tend to be paid lower wages and on average have smaller pension pots compared to their male colleagues.

One female worker, Cecilia Floren, who is 45, shared her concerns on the cost of living crisis, adding that she expects to work for another 25 to 30 years, despite her hopes to retire earlier if she had more information about pensions.

“In the current climate, things are going to get worse and people will stop paying into non-essential things like pensions to keep their household running,” she concluded.

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