Women must not rely on partners’ pension

Female businessespeople and other women need to be encouraged to make their own pension provision, it has been claimed.

Tom McPhail, head of pensions research at Hargreaves Lansdown, said that women are more likely to face poverty during retirement than men.

He was commenting after research by Prudential revealed that vast numbers of women could be risking financial independence in retirement because they expect to rely on their partner’s pension.

More than one in four women (28 per cent) aged 40 and above but not yet retired, who live with their partner or spouse, said this will be their main source of income once they cease working.

Mr McPhail commented: “There is the fact that historically women’s working patterns have been more fragmented than men’s. As a consequence, women’s pension rights generally are lower than men’s. Women of course, live longer than men, so many of them will outlive their husbands.

“We need to raise investors’ awareness generally about the importance of making prudent forward-thinking decisions around the retirement income, at the point of retirement.”

Unless action is taken, there will be an increase in the number of impoverished women in their 70s, 80s and 90s, he said.

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