A considerable number of women could be placing themselves at risk of debt in retirement by depending too heavily on their partner's pension, new …
A considerable number of women could be placing themselves at risk of debt in retirement by depending too heavily on their partner’s pension, new research has suggested.
According to Prudential’s latest Retirement Shock study, many females could experience financial independence when their working life comes to an end.
The report discovered more than one-in-four ladies (28 per cent) – who are above the age of 40, have not yet retired and live with a partner or spouse – will rely on an income from their other half as their main source of funds when they are no longer earning themselves.
Moreover, in excess of one-fifth (22 per cent) of respondents said the state pension and other benefits will provide the majority of their cashflow when they are older.
And although a quarter of women are intending to rely on the pension of their husband, 34 per cent of them admitted they do not know or understand the retirement details of their partner.
Further research compiled by Prudential found females planning to stop working this year are expecting to receive an average income of £12,200 a year.
Men, on the other hand, hope they will be getting an average of £19,600.
Vince Smith-Hughes, head of pensions development at the organisation, commented: “Relying on someone else’s pension and savings and the meagre amount provided by the state to support you in retirement is an extraordinarily risky strategy.
Recent figures provided by MGM Advantage revealed 4.5 million retirees have had to cut back on their spending as a result.
It showed 601,000 individuals have returned to some form of work to plug the monetary gap.
By Joe White