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Pension saving neglected by women

13 September 2010 / by Rachael Stiles

Almost half of non-retired women in the UK do not have a pension, meaning that 8.7 million are leaving themselves vulnerable to an under-funded retirement.

The number of women who have yet to retire and have no pension is on the rise, according to research from Baring Asset Management, with the 47 per cent who are without one rising from 39 per cent in 2008 and 40 per cent in 2009.

Even many UK adults who are approaching retirement age do not have a pension, the study found, with 22 per cent of those aged 55-64 without one.

There are more than one million UK adults aged 65 or older have not yet retired, and Barings warns that this number is set to increase as people have to work longer until they can afford to retire, because they have not started saving into a pension early enough.

People are not starting planning for retirement soon enough, says Barings, with 40 per cent of 25-34 year olds without a pension, and 32 per cent of 35-44 year olds without one.

With high numbers of people not having a pension in place, Barings says it comes as no surprise that a rising number of non-retired people intend to use their property to fund their retirement; 12 per cent said this is their plan, compared to eight per cent last year.

Marino Valensise, chief investment officer at Barings, said that the findings are "very worrying", especially considering the Government's recent adjustments to pension policy.

"With the demise of defined benefit pension plans and the fact that life expectancy is increasing, people need to save more for their retirement and start sooner," he said.

The number of people failing to start a pension soon enough suggest "retirement will be seen as a luxury for people as opposed to a right," he warned, adding that many more people will have to work past 65 in order to maintain their standard of living.

© Fair Investment Company Ltd

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