Pru says women retire on £5,750 less than men
Women expect to retire on £12,250 a year compared with £18,000 for the average man, insurer claims.
The pension gender gap is shrinking yet women retiring this year still expect their annual retirement income to be a third lower than that of their male counterparts, according to Prudential.
There is a gender gap of £5,750 in pensions, research from Prudential showed.
Prudential’s study shows the gender gap has fallen from last year’s £6,500, and has narrowed steadily since the insurer first measured a gap of £6,642 in 2009.
According to Prudential the fall this year can be mainly attributed to a reduction in men’s expected incomes.
Vince Smith-Hughes, retirement income expert of Prudential, said: “The pension gender gap appears to be narrowing, but there is still a long way to go.
“Not only does the gap remain stubbornly wide, but anticipated retirement incomes have this year hit a five year low for both men and women.
“The practical steps that women can take to improve their retirement income prospects include maintaining pension contributions during career breaks and, if possible, making voluntary national insurance contributions after returning to work.
“It is imperative for anyone looking to secure a sufficient income when they retire to begin saving as much as they can, as early as they can, and to do so regularly through life. For those who are still working, it has never been a more important time to save into a pension.”