As pension pots hit, women are being reminded to check their entitlements so they don’t fall behind in retirement.
PENSION Lifestyle changes that limit how much money can be saved can have an influence on savings and retirement prospects. Unfortunately, new research has showed that as childcare obligations fall on women’s shoulders, their pensions are suffering.
Pension equality issues between men and women have been raised several times in recent years, and new study from PensionBee sheds additional light on the subject. The online pension provider’s economic modeling revealed that the 38 percent gender pension gap could be eliminated if men and women worked the same amount of paid hours for equal pay.
“The existing gender pay disparity is caused by an unequal number of annual paid working hours, with women more likely to cut paid job time to take on a bigger share of unpaid caring and housework,” revealed PensionBee.
“Because of the high expenses of daycare, families are forced to pick one parent, usually the female, to leave or reduce paid work.
“PensionBee discovered that if men and women worked similar hours at equal pay, not only would the pay gap be closed, but the size of women’s pension pots and the overall amount in a couple’s joint retirement pot would be greatly increased.
“The gender pension gap might be abolished if men and women worked the same hours, at an average of their current hours, with men working less in their late twenties to thirties and late fifties to early sixties.
“Women would be able to expand their pots by more than £106,000, whereas men’s pots would only be reduced by roughly £33,000 as a result of this. With a combined pool of £812,827, a couple could save more than £70,000 in extra pension savings.”
The government’s “heavily criticized” Shared Parental Leave scheme, according to PensionBee, isn’t helping with these concerns.
“The program does not provide appropriate financial support,” the statement said, “because without paid parental leave from their employers, men’s weekly income would decrease to the statutory minimum of £151.97.
“If they join in the Shared Parental Leave Scheme, this might be considerably lower.
“By comparison, with strong rules in place, male participation could reach 90 percent. In Sweden, all parents are offered 90 days of non-transferable leave at 80% of their salary.”Brinkwire Summary News”.