Women face an uncertain financial future as divorce and relationship breakdowns wipe out their retirement savings.
Around 43% of women rely on joint savings with their partners to finance their later years, according to a report by pension provider Scottish Widows.
However, with a third of marriages failing to last longer than 15 years and ending in divorce, the company is urging women to make their own retirement savings.
The report found a fifth of women (17%) have their own money set aside for when they retire, compared to 30% of men.
Too many women are dependent on their partners funding their retirement – although most have had no formal discussions about pensions or savings.
Pensions not discussed
The majority (79%) of married women did not discuss retirement before they married, and 78% said do not know if they are entitled to any of their partner’s pension if they divorce.
Few divorced women (15%) discussed pensions as part of their financial settlement, even though the law says pensions should be included in divorce.
The company is concerned that divorce adversely affects retirement finances for women – especially the over 50s who are more dependent on their partner’s pensions more than anyone else.
The number of women over 50 without a pension is nearly double that of men of the same age -28% against 15%, says the firm, and as the divorce rises, these women could face financial hardship in retirement should they separate from their partners.
Challenge for older women
Lynn Graves, Head of Business Development, Corporate Pensions at Scottish Widows said: “”We know that the pressure on household budgets and the challenge of managing childcare and wider family responsibilities whilst balancing work, can all make it more difficult for women to save for retirement.
“For many older or divorced women, this can mean relying on a partner or other family members to provide support or additional income in later life. However, unforeseen events can have a stark impact on retirement plans, and it is important for women make sure they know what they are entitled to and how much they can expect to receive in retirement.
“For this group of women, it is important to act now. Making a commitment to save a set amount each month, could mean the difference between a comfortable retirement and one full of financial difficulties.”
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