You are here: Home - Retirement -

Women’s pensions lag by £5,750

Written by:
The average female retiring in 2012 will receive a pension £5,750 lower than her male counterparts.

Women are looking at a retirement income of £12,250 a year compared with £18,000 for men.

Prudential’s Class of 2012 study shows the gender gap is narrowing – it was £6,642 in 2009 – but still significant.

The disparity in retirement income is largely a result of the lifetime earnings gap between men and women, which Chartered Management Institute figures identify as a difference of £423,390.

Research shows that only 31% of women planning to retire this year believe that they will have enough income to be able to retire in comfort – a problem exacerbated by a legacy of rigid Basic State Pension accrual rules and a history of under-saving among older women, who often find themselves reliant on their husbands’ pensions.

Prudential is urging women over the age of 55 to act now to educate themselves on their projected Basic State Pension entitlement, in order to ensure that they qualify in full, and to consult their local advisory service on other benefits to which they may be entitled.

Deirdre Flood, Prudential’s retirement expert, said:

“Recent legislative changes have made the pension system fairer for women. However, many women who are in their fifties will still struggle to qualify for the full Basic State Pension as they have spent much of their working lives earning money under more rigid accrual rules.

“The closure of the pensions gender gap is happening much too slowly and older women continue to be more vulnerable. It’s important that women take control of their finances and take steps to improve their potential retirement pot.”

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Why you shouldn’t buy travel currency in the UK with your credit card

If you’re heading abroad this summer, exchanging money in the UK ahead of your travels is a sensible idea. But...

Could this be the secret to early retirement?

Taking an active approach to where your pension is invested means money is deposited into funds that can drama...

Bank of England: base rate could stay under 2% for 30 years

The Bank of England (BoE) has admitted that current forecasts show its base rate could remain under 2% for the...

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week. Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Average 50-year old has paid £190,400 in tax

By the time they hit 50, the average UK worker has paid £190,400 in direct taxes – that is, income...