Female retirees to face future debt concerns?

Women over the age of 50 could be setting themselves up for future debt worry, according to newly-released figures.

The Scottish Widows Pensions Report has found just 38 per cent of females in this age bracket are adequately saving for their retirement.

According to the research, last year witnessed a significant drop in pensions savings – taking the level to its lowest point since 2006.

The organisations’ Pensions Index, which monitors the percentage of money adequately put away for after-work years, has lessened from 54 per cent in 2009 to 48 per cent in 2010.

It revealed 21 per cent – more than one-fifth – of individuals who could be putting cash aside, are not.

Moreover, 41 per cent of people from both sexes admitted they have saved less funds as a direct result of the recent economic downturn.

The survey showed the gender gap has fallen – now standing at nine per cent compared to 12 per cent recorded in 2009 – but women still trail behind their male counterparts.

Around 52 per cent of men are currently hoarding enough money for when they give up employment, yet this figure has also dropped from last year, when 59 per cent were saving responsibly.

Ian Naismith, head of pensions market development at Scottish Widows, said: “It is clear from our research that there is a section of the population, largely made up of women over 50, who have become disengaged from pensions and savings.”

Despite this, statistics released in March 2010 showed that men had higher levels of bankruptcy and IVAs.

It was recently revealed by Alliance Trust Research Centre figures people between the ages of 50 and 64 are facing the highest rates of inflation.

By Joe Shervin