More women contributing to pensions

Women are increasingly aware that they need to make their own pension provision throughout their careers, but some myths still persist, HSBC bank has found.

In 2005 only 38 per cent of women aged 18-60 were paying into a pension scheme, whereas the amount of women, of working age, contributing has now risen to 54 per cent.

However, 38 per cent of women believed that they had to be in work to be able to pay money into a scheme; 48 per cent of women were surprised that a partner can contribute to their fund, and 70 per cent were surprised to find that, in fact, anyone can pay in funds.

Ian Martin, head of UK retirement businesses at HSBC, comments: "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.

"A 25 year old making £100 per month contributions to a stakeholder pension will achieve a £188,000 retirement fund; if they defer the pension contributions for 10 years they will achieve a £96,600 retirement fund, or nearly 50 per cent less. If they defer the pension contributions for 20 years they will achieve a retirement fund of just £45,100, or about 75 per cent less.

"We want to ensure that women are realising the sort of retirement income they are hoping for."

May 07^th 2008

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