Women will be £180,000 worse off in retirement than males – a “wake up call!”
A PENSION WARNING has been given to Britons, as data suggests that the over 55 gender gap has expanded to more than £180,000.
Pension saving is sometimes viewed as a long-term endeavor, implying that people begin saving years before they want to retire. This could take the form of workplace savings plans or personal efforts to save money for retirement. Regardless, a variety of factors influence pension saving, and this is especially true for women.
Gender wage gaps, time taken off for childcare, and other caring responsibilities have resulted in a general trend of a gender pension gap, in which women have less in their pension fund than men.
New research, on the other hand, suggests that the situation is just growing worse.
The ways in which women are now missing out have been revealed in a report released today by Cebr and equity release lender, more2life.
According to the research, males expect to earn £20,712 per year in retirement, while women expect to earn £14,964 in retirement.
When life expectancy is taken into consideration, however, the gender pension disparity may be as high as £183,936.
Despite the fact that women on average contribute more to their pension pots than men, this is the case.
When examining the average incomes of each gender in 2020, the research suggests that males will be able to contribute more than certain women.
In order to catch up, the average woman would have to labor an additional 14.5 years.
“Although women tend to be better at saving for their pension, they nevertheless face a retirement that is less comfortable and financially secure than their male counterparts,” said Dave Harris, Chief Executive Officer of more2life.
“The significant disparity in retirement incomes emphasizes the importance of addressing the underlying causes of financial gender inequality.
“In the run-up to and during retirement, we need to better help women as they make decisions about how to spend their assets.”
While the gender pension gap is a long-standing problem, it appears to have been exacerbated by the ongoing pandemic.
According to research conducted by the corporations last year, the pension gap was £157,263 compared to £183,936 this year, indicating a significant increase.
Thirty percent of the women polled stated their financial condition has worsened since the outbreak, limiting their capacity to work. “Brinkwire News in Condensed Form.”