More than half of women expect to struggle financially in later life – survey

More than half (52%) of women expect to struggle financially in later life, as do just under half (47%) of men, according to a survey.

The research also found nearly one in five (19%) 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 (94%) of retired women surveyed said they need up to £30,000 a year to fund their lifestyle.

But one in 10 (10%) reported not being able to afford their household bills.

Nearly three in 10 (29%) retired women did not feel financially comfortable, according to the findings released on International Women’s Day.

HSBC UK 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, said: “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.”

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

Here are some tips from HSBC UK for those concerned about saving enough for retirement:

– 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 whether you could generate any extra income for your retirement from a hobby or side job.

– If you can put money aside, you could consider investing into a stocks and shares Isa. As with pensions, 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 are getting closer to retirement age and are concerned that you will not have enough money, you could think about whether you can delay when you finish work. If that is 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.