Navigating the complex world of finances can be a daunting task, especially for women who are facing the harsh reality of a growing gender pension gap. A recent report by Fidelity International sheds light on the struggles many women are experiencing when it comes to planning for retirement. Here are some key findings from the report:
- More than 50% of UK women expect to run out of money in retirement due to the rising cost of living.
- 12% of working women have reduced their pension contributions in the past year, with an average decrease of £173 per month.
- Over half of women cite lack of funds after covering essential expenses as a barrier to saving more for retirement.
- The average pension pot of a non-retired woman is 45% less than that of a non-retired man.
These statistics highlight the urgent need for better financial education and support systems to help women bridge the gender pension gap. Fidelity International has introduced the Power of Small Amounts online calculator to demonstrate how even minor increases in pension contributions can significantly impact a woman’s retirement savings. For example, a 45-year-old woman earning the average UK salary could boost her retirement pot by £17,000 by increasing her contributions by just 1% of her salary.
Proactive measures, such as starting early and making consistent contributions, can make a substantial difference in securing a comfortable retirement. It is never too late to take control of your financial future. Every penny saved today can lead to a brighter tomorrow. Take charge of your finances and secure your retirement with small, meaningful changes today.
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