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Women face retirement shortfall of £8k a year

Women are not saving enough for their retirement and anticipate receiving nearly £4,000 less pension income each year than men despite working for 11 months longer, research has found.

According to a study of 2,000 people, by pension provider Friends Life, the average woman would like an annual retirement income of £25,128 to be comfortable, but predicted they will receive just £17,097, leaving a shortfall of £8,032. 

For men, the difference between desired retirement income (£27,832) and anticipated income (£21,196) is £6,636.

While both men and women are facing a "financial shock" when they retire, their anticipated retirement income is still short of what retirees currently receive – £17,992 for men and £14,664 for women, accordng to the latest department for work and pensions statistics.

David Still, managing director of retirement income at Friends Life, said the gulf between what men and women are saving and what they want to receive is concerning.

"While initiatives such as auto-enrolment are helping to raise awareness of the need for us all to save for our retirement, we must make sure people are engaged and realistic about what they need to save today to achieve their hopes for tomorrow," Still said.

"Getting people engaged to save for their retirement is essential as is the continued focus on ensuring those reaching retirement are fully aware of their options and how they can make the most of their money."