Barriers to pensions for women

Caring for young children is a major factor preventing women from providing for their old age, new research shows.

According to the survey, 50% of women who are saving for retirement stop when they have a child. As a result, only 15% of women who have children aged under five are paying pension contributions. That means 85% of those women are not paying pension contributions.

It should be asked - is there a link with the widespread difficulty in getting affordable, convenient child-care? Scottish Widows, the insurance firm that commissioned the survey, said giving up work was a key factor in low pension provision.

Ian Naismith of Scottish Widows said:

"When you have a pensions system that overlooks the needs of women, it should come as no surprise to find so many women living on low incomes in retirement."

He also pointed to changing financial priorities for women when they first have children as a reason for their sudden drop in pension saving.

Women being particularly badly off in retirement was highlighted last month by Pensions Secretary David Blunkett. He told the Labour Party conference that low pension provision for women was a scandal. We say to David Blunkett, given the millions of low paid women in public services, be careful what you do to the local government pension scheme. If the Government pushes our contribution levels up might it force many more women into having to chose whether they can afford a child or a pension?