Women urged to act now on state pension or face struggle – 9 tips from expert

Working women are underestimating how much they will need to rely on the state pension when they retire, new research has shown.

A study, called Second 50 and carried out by pension provider Aegon, showed 38% of working women expect the state pension as a significant or only source of income in retirement – a figure that jumps to 54% when they retire.

Meanwhile, men tend to overestimate their reliance on the state pensions with 33% of working men, and 28% of retired men.

Kate Smith, head of pensions at Aegon, said women needed to act to help close gender pension gap in the years leading up to their retirement.

“State Pensions play a vital role for nearly everyone, but they should not be the sole source of retirement income. It is essential for women to engage in both independent and joint financial planning.

She said Aegon had produced a guide to empower women with the information and resources they need to plan effectively for retirement.

“By taking control of their own financial future and having open discussions with their partners, women can look forward to enjoying their later years with confidence and security,” she added.

How to close your gender pension gap

Understand what makes you unique

Recognise the challenges and opportunities you face as a woman
Plan for the periods where you may need to take career breaks or reduce working outs
Factor in time out and medical needs, such as the menopause

If you are married or with a partner

Make sure your joint plans include your goals and requirements
Anticipate you may be the household’s sole breadwinner

Make way for change

Be aware of the impact of working part-time and taking career breaks on your pension
Try to put something in your pension even if you are part time
Find a balance between saving and meeting your present financial needs
Look at ways to make up any savings gaps.