Women in 40s and 50s anxious over financial futures as cost-of-living crisis bites, says Fidelity International

Retirement specialist nevertheless urges saving where possible.

The report found that 42 per cent of women in their 40s reported being less optimistic about their overall financial position than they were five years ago. Picture: Getty Images/iStockphoto.

Confidence levels among women in their 40s and 50s over their finances are being stymied by the cost-of-living crisis, hampering their ability to save for their retirement, according to data from a major name in financial services.

Investment and retirement specialist Fidelity International found that about three-quarters of this demographic reported such an issue, and said high household bills are making managing day-to-day spending more difficult. Additionally, 42 per cent of women in their 40s reported being less optimistic about their overall financial position than they were five years ago, compared to 28 per cent across all women in the UK, and 26 per cent of men in the same age bracket. The financial firm added that 45 per cent of women in their 40s and 39 per cent of those in their 50s said that if the cost of everyday life were cheaper, they would be able to invest more.

Get the latest news, straight to your inbox, with The Scotsman Today newsletter

Emma-Lou Montgomery, associate director at Fidelity International, suggested measures to help the “squeezed middle” with their finances and planning, such as automating savings, tracking lost/forgotten pensions, and mapping out an achievable map for retirement. She also commented: “The cost-of-living crisis is snapping at everyone’s heels, making it difficult for people of all ages. This has a profound effect on our financial futures, and with women already in a less secure position, the risk of the gender pension gap expanding is heightened.

"Right now, retirement goal posts can feel like they are being pushed further and further away, and savings and pensions can go neglected as attention is directed to household bills. It’s important to keep retirement in your line of sight, however, as even small but regular contributions will provide a helpful boost down the road.”

Fidelity International last year reiterated the importance of saving where possible, but unveiled data shining a spotlight on how Scots’ own such plans were being hampered, with women in particular continuing to shoulder additional financial stresses overall. It added that its own calculations showed that if women aged 25 earning an average salary (£24,188) increased their workplace pension contributions by just 1 per cent – equivalent to under £5 a week – they could have an additional £62,200 by the time they reach retirement at 68.