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Women face pension poverty while men plan for the future

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A new report from Scottish Widows  highlights the ‘alarming disparity’ between male and female pension savings.

Older women are reported to have pension funds of around £38,000 whilst their male counterparts have savings averaging £54,000.

The report in the Telegraph claims that many women are relying on their male partners to provide financial support in their old age which, given divorce rates, seems a very unreliable plan.

The study also  suggests that the gap in pension funds is set to worsen in the future.

Their findings showed that more than half of women under the age of 50 admit that they are not preparing adequately for retirement, a rise of eight per cent on last year’s survey.

This depressing news comes at a time of historically low interest rates when topping up your pension fund is an attractive option for surplus cash.

But recently announced government plans to reduce tax relief limit on pension contributions from £255,000 to £50,000 a year means this will not be such an attractive option for long.

Ian Naismith, head of pensions market development at Scottish Widows, said the report’s findings painted a “worrying picture”.

He explained that “attitudes need to change and the major disparity between male and female saving habits needs to be resolved or even more women will face poverty in their old age.”

Considering women on average have a longer life expectancy than men, shouldn’t women be encouraged to start thinking about their futures at an earlier age?

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