Almost half of women who are approaching retirement are worried about running out of money in later life, according to research by the Equity Release Council.

It found that 48 per cent of women in this group are concerned about exhausting their retirement savings too soon, compared to 41 per cent of men.

The research suggests that 29 per cent of women still working over the age of 55 expect to have a less comfortable retirement than their parents. 

This compares to 21 per cent of men aged 55-plus who are yet to retire.

Women also feel that they have less power over choosing when they are able to retire

Only 41 per cent of women who are still working are confident that  they will be able to afford to choose when they retire, compared to 56 per cent of men still working.

But despite greater concerns about the ability to fund retirement and lower pension savings, women who own their own home are less likely than men to consider equity release or other later life borrowing, with 23 per cent saying they would do so compared to 31 per cent of men. 

Equity Release Council chairman David Burrowes says: “This research reveals that older women in work are experiencing an acute crisis in confidence about achieving a comfortable retirement.

“Women are faced with a disproportionately bigger challenge in building a nest egg for later life. 

“This is driven by the perfect storm of longer life expectancies and gender differences in earnings, savings and working patterns. 

“Yet despite this, women are also less likely than men to consider later life lending products when facing a retirement funding shortfall.”

Key chief executive Will Hale says: “While retirement is generally viewed as something to look forward to – an opportunity to take a well-deserved break after a busy working life – today’s report suggests that for many people stopping work is a scary prospect fraught with financial concerns.  

“Will I run out of money? How will I pay for care? How can I build up a big enough nest egg?

“All these concerns and more are being exacerbated by the impact of the current pandemic which has seen older consumers lose their jobs, stop saving and dip into the funds they have already set aside. 

“Women who are disproportionately represented in hard-hit industries like hospitality and retail are already finding that their lower average salaries mean they are more financially vulnerable in retirement but both genders have been hit and are concerned about the future.”