The study carried out by Scottish Widows says that, around 25% of women in their 70s work though having crossed retirement age as they can't afford to retire. Moreover, 26% of them fail to save for their retirements, which is relatively high as compared to 19% of men. Women mostly rely on their husband or partner to fund their living cost post retirement. According to the study, women prove to be the biggest victims of failure in order to save for secure life after retirement. During the survey, when women were asked about their retirement age preference, most popular choice was 60, though the state retirement age limit has been increased. Although women opt for early age retirement, it is not practically possible for millions of women who don't have a private or company pension plan.
The survey finds that majority of the women depend on their husband for retirement funding, many of them unaware about the consequences if their relationship collapses. Therefore, the report warns women about such situations as in such cases, many of the women are left with worst financial conditions, with less or probably no pension at all. Based on a sample test carried out on around 5,000 adults, it was seen that only 50% of women above age 51 were saving appropriately for their retirement. Moreover, many of the women under 50 appreciated that they don't save adequately for future.
As per the Scottish Widows report, women save around £800 less than men per year, thereby creating further problems in retirement savings. This as a result portrays the ever growing gender gap in case of retirement savings, where it was £700 a year ago was. It shows that, women, to a large extent, are hurt by the economic downturn as they are likely to save at less than moderate level, due to variation in lifestyle and their choice to work part-time.
A new pension revolution has been designed to help women facing pension dilemmas of not building-up a good sum for retirement. According to the new rules implemented from 1st of October, bosses would be forced to pay pensions for their workers. This will thus solve problems of women, where for next five years, billions of workers would be automatically signed for pension plan if they are between age limit of 22 and state retirement age as well as earn £8,105 annually. Additionally, attitudes towards savings and retirement planning need to be changed and the gender pay gap need to be resolved. This would help secure future of women and help prevent them from poverty in old age.