Women have some catching up to do with their pension pots

Ladies are lagging behind gentlemen in the retirement savings stakes, research out today has found.

The study by Aegon UK found a mere 10 per cent of women are prepared for retirement, compared with 14 per cent of men.

Women's pensions pots look particular measly in comparison to men's, with women having £20,000 stashed away on average while men have an average of £52,500. The average woman is also saving £1,020 less each year compared with the average man.

Despite this lack of preparedness, women still hope to say goodbye to the day job at 63, one year earlier than their male counterparts.

"Despite encouraging signs for women, the truth is that their expectations are simply not lining up with reality," commented Kate Smith, head of pensions at Aegon.

However, all is not lost. When Aegon ran the same study in April last year, just five per cent of women were on track for a comfortable retirement and 14 per cent of women are now saving more into their pension as a direct result of the pension freedoms.

"While the freedoms have certainly had a positive impact on the women's savings behaviour, with double the proportion on track for retirement since last year, the challenges women face when planning their retirement remain complex, and it's vital that the government and industry continue to help make pension saving a priority," Smith added.

Since last April, the pension freedoms have allowed those aged 55 or over to take funds from their pension pots without first having to purchase an annuity.