Third of women risk retirement poverty, report indicates
An estimated 33% of women who are not yet retired risk falling below the minimum amount needed in their later years, Scottish Widows said.
One in three women and three in 10 men risk falling short of the income needed for a minimum standard of living in retirement, a report indicates.
The Scottish Widows report estimates that 33% of women who are not yet retired risk falling below the minimum amount needed in their later years, defined as equating to less than £13,900 a year for a single person or £22,500 for a two-person household.
Among men, 30% are projected to reach below the minimum income standard in retirement.
The economic modelling was based on Scottish Widows’ annual retirement report survey, using Pension UK’s retirement living standards.
The standards give people an idea of what sort of retirement lifestyle they could be on course for.
The research also indicated that the pensions gender gap has narrowed.
Women’s median average projected retirement income rose to £14,500 a year, up by £1,500 compared with projections in 2025.
This compared with £18,300 for men.
Scottish Widows said the gap between men and women had narrowed from £6,000 in 2025 to £3,800 in 2026.
Scottish Widows said the narrowing gap reflects narrowing gender pay differences, higher state pension entitlement and growth in women’s other savings.
Jill Henderson, a retirement expert at Scottish Widows, said: “Change must happen faster.
“Too many women face a retirement of financial hardship, with life events such as unpaid caring responsibilities, menopause and relationship breakdowns disrupting their ability to save.
“Understanding how long-term savings are tracking is essential to helping women stay financially secure.”
Analysis of Lloyds Banking Group and Scottish Widows’ own customer data also indicated that one in seven (14%) women aged under 30 were earning below the £10,000 threshold to be automatically enrolled into a workplace pension, compared with 9% of men.
Among 22 to 25-year-olds with a Scottish Widows workplace pension, 71% of women contribute 10% or less of their pay, compared with 64% of men.
Susan Hope, a retirement expert at Scottish Widows, said: “Our data shows that the pension gap takes root from a woman’s very first job.
“But closing it requires more than better awareness – it means fundamentally changing the systems that shape women’s financial futures.
“From pension enrolment and parental leave to support through divorce, menopause and illness, policy and workplace changes must better reflect women’s lives and help them build financial security at every stage.
“Closing the gender pension gap is no mean feat, but through collaboration, conversation and digital engagement, we can help future generations of women retire in a better position.”
Scottish Widows commissioned YouGov to survey more than 5,200 adults across the UK. The research was carried out in August.