Worryingly, one in four women over the age of 35 have not saved anything towards their retirement, while around half (56%) have only saved a maximum of £1,000.
The average pension pot of a 65-year-old woman today is just 20% of the average pension pot for a 65-year-old man2. This, coupled with the fact that women generally live longer, means saving a nest egg is crucial to a financially comfortable retirement.
The majority (94%) of retired females responding to the HSBC UK survey said they need up to £30,000 a year to fund their lifestyle. However, one in ten (10%) reported not being able to afford their household bills and a third (30%) said they couldn’t cover the cost of running a car. Nearly a third (29%) of retired women are not financially comfortable.
Perhaps unsurprisingly, working age women have a more pessimistic view of retirement than men with over half (52%) saying they expect to struggle financially in later life compared to four in ten (47%) of men. Younger respondents are the most optimistic about their financial future post work, with two thirds (72%) saying they expect to live comfortably.
Commenting on the research, HSBC UK’s head of wealth management strategy, Emma Chee said: “Women are living longer so we need to ensure our money lasts as long as we do. Despite the state pension increasing this year, the threat of rising inflation and the increased cost of living means we need to take control of our own financial destiny.
“It’s never too early to start planning for your retirement. Whatever your age and needs having a plan in place can be a welcome reassurance. Nearly half of retired women (48%) we surveyed reported that the pandemic had negatively affected their retirement savings, and a third (31%) said they were relying on their partner’s pension. We never know what life may throw at us so it’s important to save and invest alongside a pension to allow for a comfortable retirement.”
HSBC UK has launched an online retirement calculator to help people plan their financial future, including how much they need to save per year to achieve their aspirations for later life. The tool will give you an indication of whether you’re on track and help you plan your next steps.
The bank is also hosting a free webinar and Q&A session for people nearing retirement and those looking to make the most out of their pension pots. ‘Understanding your pension’ will take place on 30 March and customers and non-customers can register to attend here
HSBC My Investment is an online investment service available to the bank’s UK customers that allows people to invest with a starting amount of £50 per month, a lump sum of £1,000, or both, after completing a risk tolerance questionnaire.
Hannah Langston, HSBC UK Press Office: firstname.lastname@example.org | 07384 792 248
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Note to editors:
1Survey conducted by YouGov on behalf of HSBC UK. Sample size was 1,048 retirees and 2,695 non-retirees ranging from 18-55+. Fieldwork was undertaken between 5-6 January 2022. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
2Source: Jane Portas, author, ‘Solving Women’s pension deficit to improve retirement outcomes for all’ published by the Chartered Institute of Insurers (CII) ‘Insuring Women’s Futures’ programme, data derived from ONS.
Top ten aspirations for retirement
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