Women save much less than men for old age

The gap in the amount that men and women are saving for retirement has grown to a record high of nearly £30,000 over the average lifetime, the provider Scottish Widows has revealed.

Over a quarter of women are saving nothing for retirement – up from 23 per cent this time last year – and the average debt levels for women have jumped from £10,174 last year to £10,922 this year.

A report by Scottish Widows blamed the fact that women "continue to be hit disproportionately by the economic downturn".

It found that the gender gap in retirement savings has increased by over 10 per cent in 12 months. Each year, women are saving an average of £776 per year less than men for use in old age – a sharp jump on the £700 gap recorded last year.

"This means that a 30-year-old woman who maintains this average annual rate of saving will face a shortfall of £29,800 in today's money, compared to her male counterpart, if she chooses to retire at 65," Scottish Widows pointed out.