Nearly a fifth (19%) of women within five years of retirement do not have any private pension savings, according to research by LV=.
Its State of retirement report 2014, which surveyed 1,538 British adults over the age of 50, found that just 12% of men have no retirement savings and will rely solely on the state pension.
Those with no private pension savings will see their income fall by 78% as they live on a pension age of just £110 a week.
The report also found that the average annual pension income, including state pension, is £8,774, compared to the average annual salary of £25,480.
The findings indicate that a gender pay gap exists into retirement. According to the report, women will have to survive on an annual income that is up to 40% less than the average man’s retirement income with women receiving £6,580 and men receiving £10,967 a year.
Overall, however, nearly half (44%) of respondents within five years of retirement have grown more concerned about their financial situation over the past 12 months, citing a variety of reasons. More than three-quarters (77%) said their biggest worry was the rising cost of living, followed by the cost of funding old age, which was a concern for 58^.
As a result, nearly a third (26%) of working over-50s have pushed back their retirement date to boost their pension pots.
However, the research also found that just one in 10 (12%) of respondents would be willing to pay for advice about their finances in retirement.
Richard Rowney, life and pensions managing director at LV=, said: “Britons approaching retirement today are under huge financial pressure, as their retirement savings are being stretched over a much longer period of time than before.
“While undoubtedly having a longer retirement is a good thing, it means that making the right choices on how to fund your retirement is now one of the biggest financial decisions you have to make.
“The Chancellor’s latest Budget has given retirees even more choice and greater flexibility as to how they use their pension fund.
“Although the vast majority of people will experience a drop in income when making the transition from working life to retirement, considering all the income options available and seeking financial advice will help to ensure that retirees are able to make the most of their savings and select a solution that best suits their needs.”
