Women’s pensions wealth is less than a third of men’s when they reach retirement. Women typically have £51,100 compared to men’s wealth of £156,500 by their 60s.
NOW: Pensions’ new report Facing an unequal future – closing the gender pensions gap published on 11th July 2019 and based on research by the Pensions Policy Institute reveals that women taking time out of the workplace has a detrimental effect on their pension savings.
Working part-time to balance caring responsibilities has the biggest impact on women’s ability to save for their future resulting in a 47% reduction in women’s pension wealth compared to men by their late 50s.
This has a bigger impact than the gender pay gap, which cuts women’s pension savings by 28%. Women currently on average earn approximately 18% less compared to men.
Currently, there are 50% more women than men heading towards retirement without any private pension savings at all
• 1.2 million women in their 50s have no private pension wealth and hence will rely on the State Pension system and their partner to provide a retirement income.
• Women generally live on average 3.7 more years than men meaning their pension pots would need to last longer.
• To draw the same pension income throughout their retired lifetime, women would need to have saved around 5% – 7% more than men by retirement age to allow for living longer.
Unless action is taken in order to provide an adequate retirement income for both men and women, a sizeable proportion of the population will not just continue to miss out on the pensions that they deserve, but they are unlikely to have the funds they need to plan for a comfortable retirement.
Our report is based on research conducted by the PPI, read the full report >>
We spoke to a number of women, at every stage in their lives, to ask if they feel that they are saving enough for their retirement and what affects the decisions that they make on their careers and working lives.
Stefan Lundbergh, head of Cardano Insights has written a series of Blog posts which examines the pensions inequality gap.
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