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Retirement gender gap widening

Retirement gender gap widening

Category: Annuities

Updated: 28/03/2013
First Published: 28/03/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

New research has revealed the widening retirement gender gap, with women retiring with £6,500 less than men in 2013.

Additionally, the Prudential study shows that the expected retirement income for women has actually fallen by £500 when compared to last year, from £12,250 to £11,750, while for men it has risen by £250 to £18,250.

Commenting on the research, head of pensions at Moneyfacts.co.uk, Richard Eagling, said: "There has been much talk about the gender pay gap, whereby men earn more than woman, but the gender pensions gap is equally as worrying but has received less coverage."

According to Mr Eagling, there are a number of factors contributing to the widening of the gender gap, including the increasing number of women in part time work, which means that they earn less and therefore are not able to save as much towards their retirement.

"The pay gap between the two genders often means that women do not have the extra income available to increase their pension contributions, or have to scale back contributions when times are hard," he said.

"There is also a feeling that saving for retirement is often not seen as a priority for women, particularly those who have children who will often put their financial needs above their own. Another factor at play could be the mini baby boom we are seeing which is likely to mean that more women are giving up work to look after their children."

Moneyfacts.co.uk research recently revealed the importance of shopping around for the best annuity, with figures showing that the most competitive annual annuity income, based on a £50,000 pension pot for a standard level annuity without guarantee for a 65-year-old, currently stands at £2,841. In comparison, the least competitive stands at £2,444, reflecting a £355 difference.

What next?

Moneyfacts.co.uk has partnered with Premier Retirement Services to bring you our pension annuity comparison site. Premier Retirement Services specialise in pension annuities and could help you increase your income in retirement depending on your medical situation.

Learn about your annuity options. For help to compare annuity quotes online call the Moneyfacts Annuity Service: 01737 233435

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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