£6,500 pension 'gender gap': Women to retire on a third less income than men - and the gap is getting wider

By Aimee Meade

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Retiring women expect their annual retirement income to be more than a third less than their male counterparts with the 'gender gap' between the retirement of the sexes expected to hit £6,500 this year.

Women, on average, expect to retire this year on £11,750 compared with £18,250 for the average man, according to new research by insurer Prudential.

This difference, the 'pension gender gap', has grown 13 per cent since last year. While women's expected annual retirement income has decreased from £12,250, men's has increased from £18,000.

Retired women feel less prepared than men for retirement

Retired women feel less prepared than men for retirement

Prudential's Class of 2013 research tracked the plans and expectations of people entering retirement this year, surveying just over 1000 adults who intend to retire this year, and found that women's expectations of retirement income, including private, company and state pensions, were at a five-year low.

Stan Russell, retirement expert at Prudential, said: 'The Pension Gender Gap remains stubbornly wide.

 

'The retirement incomes of both men and women are under pressure, but for women the strain is particularly pronounced this year as their expected incomes reach an all-time low.'

 

The study also found that, compared to men, women felt less financially prepared for retirement. Just 32 per cent of women, compared to 52 per cent of men, believe they will have enough of an income to enjoy a comfortable retirement.

Mr Russell said: 'There are practical steps women can take today to improve their retirement incomes, including maintaining pension contributions where possible during career breaks and making voluntary National Insurance contributions when they return to work.'

The retirement income gender gap is widest in the East of England where women retiring this year expect £10,300 less than men.

The pension gender gap is at its most narrow in the West Midlands at just under £4,000, but women still expect to retire on just over £10,000, the second lowest annual income of any region.

Research shows women expect to have a much lower pension than men.

Research shows women expect to have a much lower pension than men.


 

The comments below have not been moderated.

It seems obvious that there is going to be a gap. Many women simply do not put in the same number of years working because they bring up children. Nothing wrong with that, but unless they make provision for the missing years themselves, they are bound to have less even if when they are working they are treated equally. And it's going to take someone organised, fairly well-off and with a proper eye to the future to make contributions while they aren't working. I exclude the state pension from my comments because quite frankly they've tinkered about with it so much I don't really understand any more who is going to be entitled to what (women I mean),

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Do the figures quoted include the state pension?

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Ian Maidstone: "The figures in the article are historic and as such do not take into account the new equality laws" Nope the figures are for those retiring in 2013 so equality laws are taken into account. "In addition if a woman takes 10 years or more out to raise a family..." Fair enough however there are so many if's buts that can be rolled out to explain this phenomenon that you are in danger of missing the point. The point is that women need to pay more attention to their pension arrangements. Everyone should, where possible, make provisions for their old age and should be cognisant of how the choices they make will impact on their future financial security.

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Jim426 , Portsmouth, United Kingdom, 04/4/2013 13:17 I think you'll find these figures include the State pension.

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So women have £11,750 and men have £18,250 and the average total pension pot is supposed to be £30 - £40 grand..............explain that one???????????? - Vampire , London, 04/4/2013 08:30. Exactly what I was thinking. Where does the necessary £300k pot suddenly appear from? Unless you are a fireman, or a policeman, or any other public employee it just aint gonna happen.

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Concernedcitizen @ 19.35 - my earlier comments at 15.19 are very relevant. The figures in the article are historic and as such do not take into account the new equality laws hence part of the current and historic difference. In addition if a woman takes 10 years or more out to raise a family then she has lost 10 years of potential promotional pay rises so if she is contributing to a works (or not as some employers still have non-contributry pension schemes for staff) or private pension she has paid less in and what would in all probability have been in ever increasing amounts thus adversely affecting the value of the pension pot and the amount she will draw as a pension at the appropriate time.

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Just what is the map all about? It just reflects average incomes for regions around the country and the `gap` gets bigger where there are less job opportunities for the ladies. East comes up traffic light red. Norfolk and Suffolk are mainly agricultural. One the whole a fairly pointless article which says and proves nothing.

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Where are the figures for Wales and Northern Ireland?. We have people retiring too!.

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So women have £11,750 and men have £18,250 and the average total pension pot is supposed to be £30 - £40 grand..............explain that one????????????

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There are several reasons for this not least is the fact that women tend to live longer and as such any annuities will be based on life expectancy as the insurance company has on average to pay out for a longer period for women than for men. This is no longer true, from this year the different life expectancy of men and women are now ignored in annuity rates. It is illegal to make this distinction. In addition if women take career breaks to raise children then apart from the State Pension which gives them credit for this private and works pensions do not unless they maintain their premiums which I suspect many women will not do as their incomes will drop during this hiatus period. This is a contributing factor but on average not that significant. The main reason that women's pensions are smaller is that they earn less and save less than men.

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