Women ‘staring at retirement shortfall’

Women are facing a pension shortfall of around £8,000 a year. 

Research by Friends Life highlights the precarious position many females could be in after they stop working, as they will be forced to survive on much less money than they initially expected. 

When asked how much yearly income would they like in retirement, the average was over £25,000. However, their anticipated income is actually only slightly above £17,000.

Men are also set to earn 23 per cent more than their female counterparts, demonstrating how important it is for ladies to get a grip of their financial situation. 

David Still from Friends Life said: "The gulf between what men and women are saving and what they would need to save to give them the income they want is obviously concerning.

"Whilst initiatives such as auto enrolment are helping to raise awareness of the need for us all to save for our retirement, we must make sure people are engaged and realistic about what they need to save today to achieve their hopes for tomorrow."

Mr Still is encouraging workers to build up a savings nest ahead of their retirement in order to mitigate their circumstances, although he is calling for a degree of realism as well.

The issue of pensions is an important one. With Standard Life discovering that 63 per cent of pension holders do not know the total value of their combined pension savings and 49 per cent of over 55s not knowing the value of their pots, Britons could be in for a shock when they come to give up working.

The last thing they want to do is rack up debts because they have miscalculated how much money they need to make ends meet. In order to prevent this situation from developing, the best thing they can do is set money aside every month.

By Amy White