Portal Financial warns that the situation facing women in retirement is alarming despite auto-enrolment.
New figures from the government show a reduction in people claiming Jobseekers' Allowance and the largest fall in unemployment in 25 years, but it is most often women, not men, that have unpaid roles caring for children and the elderly, with many working part time around these duties. 87.6% of women in part-time work have chosen it, but such jobs are often low paid with minimal promotion opportunities. Almost three-quarters of people in part-time work and 63% of those earning £7 or less an hour are women.
The earnings threshold to be automatically included in auto-enrolment is £10,000, which excludes many people in low-paid and part-time work. Over three-quarters of women do not think they will be financially comfortable in retirement, and 71% are not confident in making decisions about retirement saving, which shows auto-enrolment is not helping those most in need.
Jamie Smith-Thompson, managing director of Portal Financial, said: "Auto-enrolment is helping millions of people who otherwise would have had no pension provisions, but much more needs to be done to protect women. There was a time when they were able to rely on their husband’s pensions because they had been at-home mums, but with half of marriages ending in divorce and more women working, this is no longer an option.
"It is also worrying that so many women lack confidence in planning for their retirement. This highlights the importance of independent advice, which can explain the possible options available, such as completing their National Insurance record, being able to claim a percentage of their husband's pension, or the full amount for widows, and claiming backdated pension rights with an Employment Tribunal under the right circumstances."
|
