New data from the Office for National Statistics (ONS) has revealed that more women are working than ever before.
According to the ONS’s latest employment statistics, 15.26 million women are now in work, representing 47.1% of the UK’s total workforce. The number has increased by around 1.5 million in every decade since the 1990s. The figure means that 71% of 16 to 64-year-old women are now in work.
The increase is partly due to women retiring later. The ONS also found that the number of women who retire before the age of 65 has fallen to 664,000 – the lowest on record. Ten years ago, 1.1 million women retired before that age. While part of that change will be due to women continuing their careers for longer, it is also linked to the changes in the state pension age for women.
However, despite longer working lives, women still retire with less pension savings than men. A separate report from the ONS has shown that the typical pension wealth of a woman in retirement is 44% that of men.
The state pension age is set to increase over the coming years for both men and women, with plans to reach age 67 between 2026 and 2028. That could mean even more people stay in work for longer.
While longer working lives are positive news, it’s important that both men and women are in control of how and when they want to retire. That means careful financial planning throughout everyone’s working lives to build the best possible savings ‘pot’ for retirement. Your Brunsdon Financial Adviser can provide advice on pensions and other forms of savings, as well as helping you to understand how those savings can continue to work hard for you after you’ve retired.
Sources: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/june2018#economic-inactivity https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/wealthingreatbritainwave5/2014to2016#private-pensions-wealth https://www.ageuk.org.uk/information-advice/money-legal/pensions/changes-to-state-pension-age/
Please note that this information is for guidance only and does not constitute personal advice.
Any information provided in this article regarding tax treatment or legislation is based on our understanding of current UK legislation law, tax law and HM Revenue and Customs practice (July 2018), all of which may be subject to change and your individual circumstances may impact on these. Brunsdon is not responsible for the content of external web sites.