Some female retirees could end up with a 14-year shortfall between their private pension funds running out, and the end of their life, L&G said.
The average age women can expect to empty their pension pot has been revealed. Some female retirees could end up with a 14-year shortfall between their private pension funds running out, and the end of their life, L&G said.
A study by Legal & General (L&G), found women could exhaust their private pensions by age 73. With the average life expectancy for a 60-year-old woman in the UK at 87, this leaves a potential 14-year gap where retirees may face financial strain.
Katharine Photiou, managing director of workplace savings at L&G, said that, after decades of saving, the ability to withdraw money from a pension can create a “lottery effect”. But she cautioned: “What seems like financial freedom now might turn into uncertainty later.”
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Catherine Foot, director of Phoenix Insights, said that while pay is a “major reason” behind the gender pensions gap, the disparity is “made worse by life events that women can face – such as motherhood, divorce, caring responsibilities, and menopause – which disproportionately affect their ability to save”.
She added: “Addressing the gender pension gap means thinking about how women are supported at every stage of their working lives, and encouraging employers to go above and beyond the minimum levels of support.
“This should include integrating greater workplace flexibility around caring commitments or a significant life event and expanding the accessibility of workplace pension saving, as women are much more likely than men to fall under the minimum auto-enrolment earnings threshold.”
Another study, from money platform Intuit Credit Karma, found that over half (59 per cent) of parents have taken on new debt to afford maternity or shared parental leave, borrowing an average of £2,658.
Akansha Nath, general manager (international) at Intuit Credit Karma, said: “Setting aside savings where possible and carefully budgeting for your reduced income and unexpected expenses can help alleviate financial strain.”
