Retirement income gender gap reaches £6,700
According to Prudential, men’s expected annual retirement income is £18,900 compared with women’s at £12,200.
Despite the widening gap, there is some comfort for this year’s female retirees – at £12,200 their average expected annual income is £450 higher than it was in last year’s study.
However, a man’s average expected annual retirement income has grown by £650 since last year to £18,900.
Prudential first highlighted the issue of a retirement income gender gap in 2009 when women’s average expected retirement incomes of £13,700 a year were £6,600 less than male retirees.
The gap peaked in 2010 when men’s expected retirement incomes were larger by £7,400. This year’s gender gap shows a rise of £200 since last year and is now at its widest since the 2010 peak.
Research earlier this year found both sexes expect an average annual retirement income of £15,800 including income from private, company and state pensions. This is £500 higher than in 2013 and the first rise in three years.
Vince Smith-Hughes, retirement income expert at Prudential, said: “It is welcome news that average expected retirement incomes have increased for both men and women, but concerning that the gender gap remains stubbornly wide.
“The changes to pensions and how people can take their retirement income announced in the Budget last month will provide savers and retirees with more choices.
“However they don’t alter the fundamental fact that many people are not saving enough for a comfortable retirement. There are also some specific practical steps that women can take today to improve their retirement incomes in the future. These include maintaining pension contributions where possible during career breaks and making voluntary additional National Insurance contributions when returning to work.”