Young women ‘could face future debt worries’

Young women with poor attitudes to savings and pensions could face debt troubles in later life, new research has suggested.

Carried out by Scottish Widows, the study found many females are picking up bad habits from their parents and failing to prepare themselves financially for when they are older.

The sixth annual Scottish Widows Women and Pensions Report – which is based on a sample of 5,000 adults – revealed a disparity in money matters between young ladies and their male counterparts.

It was discovered girls between the ages of 18 and 29 have typically accumulated just over half the amount of money males in the same age bracket have – an average of £4,816.50 compared to £7,709.

The investigation showed these women are putting aside just £49 a month, while guys are saving in the region of £111.

Furthermore, it was revealed 31 per cent of young females who do not have a private pension have never seriously considered the prospect of saving into one, while four-in-ten ladies who do have a pension do not know what it is.

This is compared with just one-in-four men and the organisation suggested this could be because more women consider the schemes a risky investment.

Ian Naismith, head of pensions market development at Scottish Widows, said: “Women are saving less than they were a year ago and younger women are saving the least, which is especially worrying as savers tend to stick to habits developed when they are young.”

Recent research from Friends Provident indicated people in Britain may be delaying retirement in a bid to reduce their debt concerns.

By Joe White