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Female contractor accountants should start saving now

Female contractor accountants should start saving now

One expert is advising women to make financial provision for their own retirement rather than depending on their partner for support.

Tony McPhail, from Hargreaves Lansdown, says that women should have an extra incentive to save money for their retirement as they are more likely to suffer financial hardship in old age.

Women tend to live longer than men and because many women take career breaks to have children, they end up with less retirement savings rights. Add to that the fact that husbands often save in a pension scheme that dies with them, leaving the widow without an income, and it is easy to see why women need to take more of a forward thinking approach to retirement.

McPhail made his comments after a survey by Prudential revealed that more than 1 in 4 employed women (28%) aged 40 and above plan to survive on their husband’s pension after they’ve left work.

However, there is growing concern that the majority of people will not have saved anywhere near enough money during their employment to enable them to enjoy their retirement. A recent survey from Aviva found that every adult will need to save on average £10,300 a year in order to retire comfortably.

The senior policy adviser for the National Association of Pension Funds, James Walsh, said that we are facing a pensions crisis in the UK and the sooner people start planning for their retirement, the better. In fact the UK is in the unenviable position of having the largest per person pensions gap in all of Europe, followed by Germany, the Republic of Ireland, France, Spain and Russia.

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Image: Use of money during emergency conditions and savings by Tilemahos Efthimiadis

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