Retirement poverty 'to hit third of women'

Thursday, June 17th 2010

Women planning for retirement may consider setting finances aside at an early stage to ensure they are well prepared.

According to findings from the Prudential Class of 2010 retirement survey, 35 per cent of females due to retire this year will have an income below the poverty line - £14,000 a year or less.

The research shows a gender gap still exists, with 29 per cent of men reportedly in the same situation.

Vince Smith-Hughes, Prudential's head of business development for pensions, stated the results may be due to career breaks taken by women when they start a family.

"Possibly the last thing on your mind when you're taking care of children and the home is how you're going to fund your retirement years," he continued.

But females should be aware that the time spent away from work has an impact and they need to consider planning for the future.

Directgov notes this can be done by looking at five key areas, including health and lifestyle, money, care and work.