Stubbornly-wide Pension gender gap narrows: Pru
Women who retire this year can expect their annual retirement income to be a third lower than their male counterparts a study by Prudential has claimed.
The Class of 2012 study showed that the gender gap has fallen to £5750 from last year’s figure of £6500.
The study examined the finances and expectations of people planning to retire this year. Women expected an annual income of £12,250 in retirement, compared with an average expected income for men of £18,000.
The poll also found that 49 per cent of women believed they will not have enough income for a comfortable retirement, compared with 40 per cent of men.
Vince Smith-Hughes, retirement income expert for 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 gender gap was widest in the southeast where women retiring this year expected to have £7878 less income a year on average than men – £12,259 compared with £20,137.
The gender gap was narrowest in the northwest with women in the region retiring on an average of £13,087 a year, compared with £15,632 for men – a difference of £2545.
Mr Smith-Hughes said women should take practical steps to prepare for their retirement and maintain pension contributions during career breaks.
He added: “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.”
Amanda Davidson, director of London-based Baigrie Davies, said: “All of these studies show women need to save more. It is a worrying figure, especially as we know the average woman will live longer than the average man. Women therefore should have better pensions as they will be around for longer.
“Women also earn less than men so, allowing for that, it is still a worrying statistic.”
|
Expected retirement income |
Women |
Men |
Pension Gender Gap |
|---|---|---|---|
|
2012 |
£12,250 |
£18,000 |
£5,750 |
|
2011 |
£12,900 |
£19,400 |
£6,500 |
|
2010 |
£12,200 |
£19,600 |
£7,400 |
| 2009 | £13,671 | £20,313 | £6,642 |