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New research has revealed that women continue to be substantially worse off financially on average than men when it comes to retirement income.
According to the study by Prudential, women retiring in 2018 will receive an average income of £16,900, which is £4,900 (29%) lower than the average income men can expect to receive (£21,800).
The Joseph Rowntree Foundation’s Minimum Income Standard states the income for a single pensioner should be at least £9,998. However, findings show that one in six women will be retiring with an income below this standard, compared to just one in ten men.
On a more positive note however, the retirement income gender gap is narrowing and is now the second lowest on record, with the smallest gap of £4,800 recorded in 2015. This is a significant improvement when compared with the widest gender gap in 2008 when the average expected retirement income for men was 84%, or £9,500 higher than that expected by women.
“As working patterns continue to change and become more flexible and shared parental leave is more widely encouraged by the Government agenda and employers, the future looks positive for narrowing the retirement gender gap,” commented Kirsty Anderson, a retirement income expert at Prudential.
“It can be difficult to justify any extra expense when taking a career break, but it is extremely important for anyone taking time out of work to maintain their pension contributions,” she added. “Saving as much as possible as early as possible is the best way to secure a good quality of life in retirement.”
To speak to a member of our expert team about your pension, contact us today. We aim to ensure that you are satisfied with everything we discuss with you, and the decisions you make. All of our team members are expert Financial Advisers and can get you the help and peace of mind you need.
