Retirement shock for women who face £8,000 shortfall

A financial shock is awaiting many women when they pack up work, with annual incomes £8,000 beneath what they believe will give them a comfortable life, a study indicates. This is the average amount female pensioners will be lacking to give them what they consider a satisfactory retirement income, according to a study by pension provider Friends Life.Other headline figures from the survey of 2,000 adults were that women expect to retire later than men and they anticipate 24% lower retirement income.Women expect to retire eleven months later - at 62 and a half years old – and anticipate receiving far less (£17,097) in yearly retirement income than men (£21,195), assuming they have no other source of income in retirement.Women said £25,128 was the annual retirement income that will allow them to live comfortably, a figure which is currently £8,000 more than their expected income from their pension.Men will also fall short of their desired income (£27,832) but only by £6,637.{desktop}{/desktop}{mobile}{/mobile}David Still, managing director of retirement income at Friends Life, said: "The gulf between what men and women are saving and what they would need to save to give them the income they want is obviously concerning."Whilst initiatives such as auto enrolment are helping to raise awareness of the need for us all to save for our retirement, we must make sure people are engaged and realistic about what they need to save today to achieve their hopes for tomorrow."Putting money aside or into a pension is a must, but so is making the most of savings on reaching retirement. Getting people engaged to save for their retirement is essential as is the continued focus on ensuring those reaching retirement are fully aware of their options and how they can make the most of their money."While we need to ensure that people are realistic in their expectations, there are things that they can do to positively influence what they may receive in retirement."Friends Life said up-to-date figures show the annual retirement income for single men (£17,992) is 23% greater than single women (£14,664).

Retirement shock for women who face £8,000 shortfall

Related items

News from Twitter