Women are losing out on a good pension because they put their family’s needs ahead of their own‚ a new report from the Department for Work and Pensions has found.

The report‚ Financial Plans for Retirement: Women’s Perspectives i‚ shows that women lose out because they think their family’s short-term needs are more important than their own long-term financial requirements. The problem is made worse because they often work part-time or in low-paid jobs making it harder for them to save for retirement.

The report‚ which the Government will use to form pension policies‚ highlighted that both men and women have little understanding of the pensions system. Women also felt that help and advice was not readily available and that many women expect their partner to provide for them in later life.

Gordon Lishman‚ Director General‚ Age Concern England said: "This report rightly highlights the particular problems facing women who are trying to build up retirement income.

"The pension system was built more than 50 years ago and is now outmoded and littered with obstacles for people with non-traditional working patterns. As a result millions of women who have been carers‚ full-time mothers and low-paid workers‚ now face poverty in retirement. Only 16% of newly-retired women have a full Basic State Pension on the basis of their own National Insurance contributions compared to 78% of men.

"And tomorrow's pensioners face the same fate. Our research shows that a third of young women expect to rely on their partner for a pension. The Government has already called the problem a 'national scandal'. Creating a pension system that works for women must be at the heart of the Government's pension reform."

A survey published last week by Age Concern revealed that 75% of people felt that carers and those in low-paid work should be able to build up a pension in the same way as someone in full time employment ii.

Notes to Editors

i The research was carried out on behalf of DWP by Wendy Sykes at Independent Social Research‚ in conjunction with Alan Hedges. Qualitative‚ in-depth interviews were conducted with 69 women and 27 of their male partners. Interviews were carried out in 5 areas of the country between September and November 2004.

ii ICM Research interviewed a random sample of 1010 adults aged 18+ by telephone between 10-12 June 2005.  Interviews were conducted across the country and the results have been weighted to the profile of all adults.  ICM is a member of the British Polling Council and abides by its rules. 

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