Wednesday 29th March 2006
Women could be missing out on the benefits that stakeholder pensions offer, according to HSBC.
Although there is currently a great deal of contentious debate regarding pensions, the bank has warned that women taking career breaks to raise children could in particular be missing out.
Despite a rise in the level of understanding of pensions, HSBC warns that an "alarming" number of women are not paying money into a pension and mistakenly believe that they have to be working to do so - even though they are able to regardless of their working status under a stakeholder pension.
Ian Martin, head of pensions and retirement income at HSBC, warned: "This will seriously compromise their final retirement fund - particularly for those women who stop making contributions for a number of years while raising their children at home."
HSBCs report also highlighted the fact that most women take a career break at a time when pension benefits accumulate most efficiently.
Mr Martin added that: "With the Inland Revenue adding £28 to every £100 invested, women around the country are missing a trick by not taking advantage of the pension options available to them."
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