Mind the growing pension gender gap
Women retiring this year expect their annual retirement income to be more than a third (36%) lower than men's, adding up to a pension gender gap of £6,500, according to research published today from Prudential. The Class of 2013 study shows women expect to retire on £11,750 a year, compared with £18,250 for men. The pension gender gap is 13% wider than it was in 2012.
It's no secret that the retirement incomes of both men and women are both stretched and under pressure in today's economic climate, but for women, the strain is particularly pronounced this year as their expected incomes reach an all-time low.
The study also found that 43% of women retiring this year feel financially well-prepared for retirement, compared with 52% of men. Just 32% of women believe that they will have enough income to enjoy a comfortable retirement, compared with 41% of men.
Commenting on the findings, Marta Phillips OBE CA, Chief Executive of The Pensions Advisory Service said: “Whilst the research shows that many women will not have as much income in retirement as men, there are a number of practical steps that women can do to get the most out of their pension savings.
“Save as much and as often as you can, so your savings have time to grow. If you are taking a career break consider maintaining your pension contributions and making voluntary National Insurance contributions when you return to work. When you come to retire, remember to shop around for the best pension deal for your money. “
“If you need help with planning your retirement and have questions about your pension call our dedicated pensions helpline for women on:
0845 600 0806.”