A fifth of women have no pensions savings within five years of retirement and will rely solely on the state pension, a report warns.

A total of 30 per cent of women aged over 50 expect to work longer than previously anticipated compared to a quarter of men (23 per cent), according to the report by the financial provider LV.

The firm’s annual State of Retirement report suggests that the average annual income drops by two thirds upon retirement and the average person retires with an annual income almost a quarter less than the minimum wage.

LV also found that 12 per cent of retirees have outstanding credit card debt, 7 per cent have an outstanding mortgage and 5 per cent are overdrawn.

The report says while the average annual salary for the over-60s is £25,480, the average annual pension income, including state pension, is a third of that at £8,774.

This means that the average Briton retires with an annual income almost 24 per cent less than the minimum wage.

Richard Rowney, LV’s life and pensions managing director, said: “British people approaching retirement today are under huge financial pressure as their retirement savings are being stretched over a much longer period of time.”

The report’s findings indicate that the gender pay divide that most women experience in the workplace continues into retirement.

It suggests that women will have to survive on an annual retirement income that is up to 40 per cent less than the average man’s, with women receiving £6,580 and men receiving £10,967 a year.

http://www.telegraph.co.uk/ By: Agencies 8:12PM BST 21 Apr 2014