Pension crisis as British women lose nearly £90,000 in retirement savings due to menopause: 'Critical issue!'
Martin Daubney breaks down in tears as he hears from pensioners who are losing their Winter Fuel Payment
GB NEWS
New research from Fidelity International has shone a light on a growing pension crisis in the UK as thousands of women are losing close to £90,000 of their hard-earned cash.
Women taking career breaks due to menopause symptoms could face a staggering £86,139 shortfall in their retirement savings.
Nearly eight-in-ten women experience menopause whilst still working, affecting a significant portion of the UK's 47 per cent female workforce.
Research from Fidelity's annual Women and Money study shows 10 per cent of women in their 40s report menopause symptoms negatively impacting their earning potential.
This figure rises to 16 per cent for women in their 50s, with many forced to take substantial time off work.
The impact extends beyond menopause alone, with 60 per cent of women taking career breaks compared to 43 per cent of men, due to various responsibilities including childcare (23 per cent), health issues (22 per cent), and caring for older family members (nine per cent).
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British women are seeing their pension pots take a hit
GETTY
A 51-year-old woman, the typical age for menopause onset, could see her pension pot reduced by almost £20,000 after a one-year career break.
This shortfall increases to nearly £37,000 for those taking a two-year break from work.
Based on ONS average earnings of £28,765, Fidelity projects a woman contributing eight per cent of earnings from age 25 would typically accumulate £359,380 by retirement at 65.
Recovery proves challenging, with only 13 per cent of women able to increase savings after returning to work, compared to 27 of men.
Jackie Boylan, the head of Investor Servicing at Fidelity International, said: "These figures highlight a critical issue - women are disproportionately affected by life events that require them to take career breaks."
"Menopause is just one of many life stages that can affect a woman's career and financial stability, and addressing the financial implications of menopause is crucial."
She emphasised that "employers and policymakers must work together to create supportive environments that acknowledge these challenges and empower women to manage their careers and health without sacrificing their financial futures".
Boylan also warned that failing to do so risks worsening gender gaps in both earnings and savings, particularly as women prepare for retirement.
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Pensioners have suffered during the recent cost of living crisis GETTY However, there is hope for mitigating these pension losses, according to Fidelity's analysis. Women who increase their pension contributions by just one per cent from age 25 could significantly offset the impact of later career breaks.
For example, a woman taking a one-year break at 51 could see her pension pot reach £383,608 with this increased contribution.
This represents over £23,000 more than someone paying the minimum eight per cent without a career break.
It would also mean £42,000 more than a woman who takes a one-year break while maintaining the standard eight per cent coontribution rate.
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