Some 52 per cent of women in the UK do not believe they will have enough money to sustain their income in retirement.
Findings from Fidelity International’s latest Women and Money study found a significant number of women have adjusted their financial plans in response to economic pressures over the past 12 months.
Jackie Boylan, head of investor servicing at Fidelity International, said: “The most recent data underscores the stark reality many women face as they navigate a complex financial landscape.
"The cost of living crisis has resulted in many women prioritising their most immediate financial needs, putting their longer-term financial future at risk."
The study found 12 per cent of women have reduced their pension contributions, with those who have done so cutting back by an average of £173 a month.
This reduction is largely driven by the current cost of living crisis, forcing many women to prioritise their more immediate financial needs with 51 per cent citing a lack of available funds after covering essential expenses preventing them from saving more into their retirement fund.
While 22 per cent of those surveyed had redirected funds towards other savings goals and 12 per cent expressed uncertainty about the most effective strategies for saving for retirement.
The research also found a persistent and significant gender pensions gap of 43.3 per cent on average from 2022 to 2024.
In 2022, the gender gap stood at 41.4 per cent, and by 2023, this gap widened to 45 per cent. In 2024 the gap slightly narrowed to 44.5 per cent.
Boylan added: "With so many women feeling concerned that they will not have enough money to sustain their retirement, we must take action to provide better financial education and support systems to help women navigate these challenges.”
According to Fidelity International there are ways for women to feel more in control of their long-term finances.
Its analysis showed that for a 45-year-old woman earning £28,765, increasing contributions by as little as one per cent could boost their retirement savings by £17,000.
Increasing contributions by three per cent could see their savings grow by an extra £51,100 , while 5 per cent more could secure an additional £85,200.
Boylan said it is "never too late or too early" to make changes to pension contributions.
She added: "Encouraging women to seek professional financial advice and explore alternative savings strategies can make a significant difference in enhancing financial security in later years and it’s encouraging to see the new Chancellor, Rachel Reeves, pledge to address the gender gaps in finance.
“Closing this gap is a crucial step towards achieving economic equality and requires proactive measures to ensure that all individuals, regardless of gender, can retire with confidence and security.”
alina.khan@ft.com
