Nearly half of women don’t have a pension

A staggering 47% of women who are not retired (8.7 million) in Great Britain do not have a pension, reveals new research from Baring Asset Management (Barings). The total number of women who have yet to retire without a pension is increasing year-on-year, as the corresponding figures in 2009 and 2008 were 40% and 39% respectively.

Equally alarming is the fact that the research shows that more than one in five (22%) working adults aged 55 – 64 does not have a pension. The asset manager’s research reveals that there are over one million people aged 65 or more still working, but it warns that this number could increase dramatically as a result of so many people not having pension plans.

The findings reveal that the message about the need to start saving for retirement as soon as possible is being ignored by many people. Four out of ten people aged 25 – 34 don’t have a pension plan, and the figure for those aged 35 – 44 is one in three (32%).

Age Group % of people yet to retire and don’t have a pension plan:
18 - 24 77%
25 - 34 40%
34 - 44 32%
45 - 54 27%
55 - 64 22%
65+ 17%

On a regional basis, Barings’ research reveals that a staggering 47% of people in the North West are without a pension plan – the highest percentage for any part of the country. The corresponding figure for Wales is 27%, the lowest for Britain.

Region % of people yet to retire and don’t have a pension plan:
North West 47%
Eastern 44%
London 44%
East Midlands 41%
South East 36%
West Midlands 35%
Scotland 35%
North East 34%
Yorkshire and Humberside 31%
South West 30%
Wales 27%

Given these findings it is perhaps not surprising to find that 12% of non-retired people plan to use their property as their pension. The corresponding figure in 2009 was 8%.

Marino Valensise, Chief Investment Officer, Barings comments, “Our findings are very worrying. With the demise of defined benefit pension plans and the fact that life expectancy is increasing, people need to save more for their retirement and start sooner. However, our research suggests that increasingly, retirement will be seen as a luxury for people as opposed to a right, and many more will be forced to work beyond their 65th birthday in order to maintain their standard of living.”