Women 'face hardship' in retirement
Recently published research has revealed that many women will experience difficulties as a result of the current structure of the pensions system in the UK, with these problems still persisting after planned reforms.
The joint report by Scottish Widows with the Equal Opportunities Commission claimed that 32 per cent of women have no private pension provision of any sort, with half of those who start saving for retirement ceasing to do so when they have children.
Under the proposed system of personal accounts, a woman earning a median wage for her gender saving from 22 until retirement would receive 69 per cent of the income that a man earning the median wage for his sex would.
Ian Naismith, head of pensions and market development at Scottish Widows, said: "Our research is a stark reminder of the plight that women face in retirement."
He added that the system at present did not properly take into account women's irregular working patterns, with childcare and looking after dependents often interrupting a working life.
The Association of British Insurers recently described the pensions bill as an "important step" towards pension reform, backing moves to restore the link between pensions and earnings and making the system fairer for women.
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