More Women Committed To Planning For The Future
In the results of a newly-released study, it has been suggested that there has been a marked increase in the number of women who are contributing towards a pension.
According to HSBC, a little over a third (37 per cent) of women were said to be putting money aside for retirement when the company began its study of consumer attitudes towards pension planning in 2005. However, this year’s results show that this figure has risen to 54 per cent, while the number of females who are choosing not to contribute at all has also fallen by around half, with under six million women without a pension scheme. Of those found not to be putting money aside, 32 per cent said that this was because they were either not working or were working on a part-time basis.
This figure amounts to around two million women who are failing to contribute to their pensions because they believe they are ineligible - the same number as in 2005. Some 38 per cent of respondents stated that they thought it was necessary to be working to make deposits into a pension savings scheme, while less than half were aware that a husband or wife can contribute to a partner’s scheme even if they are not working.
Commenting on the figures, Ian Martin, head of UK retirement businesses at HSBC, said: “Our research is very encouraging, in that it shows women are increasingly taking control of their own retirement planning. Yet many women are potentially missing out as they are still confused about when they can pay into pensions and who can pay into pensions. If women take time out from employment, either for child care, a sabbatical, or choosing to work part-time, they often stop paying into their pension scheme, or believe they can’t start paying into a pension. This means they are unnecessarily restricting the amount they will be putting into their pension pots.”
For those who are struggling to find the capital to contribute to a pension scheme due to the strain placed on finances by costs such as credit card repayments or utility bill expenditure, taking out a debt consolidation loan may be of assistance in allowing them to organise their monthly outgoings and leave them with money left over to put aside for the future.
The importance of making regular deposits was highlighted by the firm in its examination of likely savings to be made by those who do not start contributing until later on in life. For a 25-year-old making 100 pounds per month contributions to a stakeholder pension, a retirement fund of 188,000 pounds can be achieved, while for those who do not start making contributions until the age of 35, the total retirement fund enjoyed will be 96,600 pounds - a reduction of nearly 50 per cent.
Such news follows another report published early last month by financial services provider Fair Investment which showed that over a tenth of Britons are yet to begin contributing to their pension package. By failing to prepare adequately for the future, it is possible that financial demands such as personal loan repayments or mortgage costs may be more difficult to manage in later years.
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