A third of women over 50 have no pension

New research shows that a third of all women over the age of 50 have no private pension set up to help them in their retirement.

A study by insurer Sun Life revealed that 35% of women spoken to had no pension savings compared to 20% of men.

Relying

Almost a third (30%) said they were relying on their partner’s pension to see them through while 12% expected to be working past retirement age and 11% believed an inheritance would help them out.

Simon Stanney, Sun Life’s equity release marketing director, said: “Our research reveals that one in five over 50s don’t have private pensions and that many over 50s are worried about being able to fund their retirement.

Equity release

“But we can also see that one in five have realised the value of their home could help bolster their pensions, either by downsizing or equity release.”

The survey showed 20% were planning to use equity release from their homes to pay for a more comfortable retirement with an average £135,000 increase in the value of their property over the last 25 years.

Not surprised

Equity release expert Tracey Lucas said: “I’m not at all surprised by these findings.

Things may change in the future, but even then there is still this attitude that women will stay home and bring up the children, and therefore not save enough into their pensions.

“And then, of course, there are many people who don’t believe in pensions full stop, which is an issue for the pensions industry to tackle.”

State pension

Millions of women have also been affected by the government’s changes in the timescale for receiving their state pension.

Between 2010 and 2018 around 2.6 million women whose retirement age used to be 60 have seen government changes push their pension age back to 65 to bring them in line with men.

Both sexes will gradually increase going forward until the pension age reaches 68.

But many women were unaware of the changes happening so close to their expected retirement age and were caught unprepared.

Now, with the failure of the WASPI (Women Against State Pension Inequality) campaign gto reverse the changes, they have been left with huge holes in their finances, accusing the government of robbing them of years of pension payouts.