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Two million women losing out on pension income

Almost 2 million women are failing to make pension contributions because they believe they are ineligible according to research from HSBC.

Research from the bank shows that while more women than ever now have pensions in the UK, confusion over their eligibilitt means that many are losing out on potential pension income.

HSBC started tracking consumer attitudes to pension planning in 2005 and it found that just over a third of women surveyed (37%) aged 18-60 were contributing to a pension.

Three years on, the survey shows that over half of women questioned (54%) are now paying into a pension.

Of the women without retirement provision, almost a third of female respondents admitted they were not contributing because they are not currently working or only work part-time.

While 28 per cent of the women not planning for retirement said they believed they were too young to be prioritising pension provision.

Over a fifth of women without a pension revealed they couldn’t afford to pay into a scheme.

Only 2 per cent of women respondents said they were relying on a State Pension to fund their retirement, down from 8% in 2005.

HSBC head of UK retirement businesses Ian Martin says: “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.”

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