More than half of women are expected to struggle financially in later life

More than half of women are expected to struggle financially in later life

March 8, 2022

More than half of women expect to struggle financially in later life, compared to just half of men, according to a survey carried out by HSBC.

More than 1,000 retirees and more than 2,600 people who had not retired were surveyed in January.

The research found nearly one in five people who are now retired had to decrease the amount they set aside for their later life due to the coronavirus pandemic – some did so to support family members.

The majority of retired women surveyed said they need up to £30,000 a year to fund their lifestyle.

But one in ten reported not being able to afford their household bills, while nearly three in 10 retired women did not feel financially comfortable.

HSBC has launched an online retirement calculator to help people get an indication of whether they are on track financially for their retirement.

The bank’s head of wealth management strategy, Emma Chee, says how ever old you are or what your needs are, it’s a ‘welcome reassurance’ to have a plan in place.

‘Nearly half of retired women we surveyed reported that the pandemic had negatively affected their retirement savings,’ she says. ‘A third said they were relying on their partner’s pension.’

If you’re concerned about saving enough for retirement, HSBC UK has some tips to help get you started.

Consider whether you can increase your pension contributions 

This will help you to make the most of the tax relief on your pension savings. The longer you have your money invested, the more time and potential it has to grow.

Think about generating extra money for your retirement

This could be from a job you do on the side or even a hobby. You could even consider investing into stocks and shares ISAs with pensions, if you decide to put money aside.

It’s important to remember that the value of stocks and shares ISAs can go down as well as up.

Consider any joint allowances

If you are in a stable relationship with shared assets, it could make sense to look at both your pensions and savings together.

Can you adjust your retirement plans?

If you’re getting closer to retirement age and are concerned that you will not have enough money, you could think about whether a delay in when you finish work is possible

If that’s an option, let your pension provider know as it may make sense to change where your pension is invested.

Switching to reduced working hours can be a way to have more financial security while also achieving a better work-life balance.

If you want more tips and tricks on saving money, as well as chat about cash and alerts on deals and discounts, join our Facebook Group, Money Pot.

Do you have a story to share?

Get in touch by emailing [email protected]

Source: Read Full Article