Slough Office: Herschel House,
58 Herschel Street, Slough SL1 1PG
London Office: 10 John Street,
London WC1N 2EB
Slough Office: Herschel House,
58 Herschel Street, Slough SL1 1PG
London Office: 10 John Street,
London WC1N 2EB
Pensions for women at retirement are half the size of men’s.
38% of women who have taken a career break were not aware of the long-term financial impact it would have on their pension.
We’re all aware of the gender pay gap that persists in our society. However, you may be forgiven for not considering the gender pension gap. This is the difference in the average amount of money that men and women have saved for retirement. And it’s something we should all be aware of from early in our careers.
Statistically speaking, women are more likely to take career breaks to raise children or care for relatives. Women also hold fewer senior positions than men. This has a knock-on effect on earnings and pension contributions over time. Women tend to live around four years longer than men too, meaning they need to save about 5-7% more at retirement age.
The result? Women’s pensions at retirement are frequently half the size of men’s – regardless of the sector they work in.
The gender pension gap exists regardless of average pay or sector. Seeking financial advice now could help you to offset the gap and enjoy a larger pension upon retirement.
Research has found that every single industry in the UK has a gender pensions gap. Even those dominated by women. The gap also exists regardless of average pay across sectors. It ranges from a gap of 59% in the healthcare industry, to 13% in courier services.
Let us be clear. The gender pensions gap is a fundamental societal issue over which individuals have limited control. Ideally, governments would do more to provide tax incentives for pension contributions and all employers would be able to offer flexible working arrangements that allow women to balance work and family life.
That being said, here are some actionable steps that anyone can take to help offset the gap:
And start early. Compound interest remains hugely underrated and poorly understood by all.
You may find that consolidating your pots will bring them down.
Check how much your state pension will be and when you’ll get it. Plan how to cover any shortfalls.
Get a payrise? Congratulations. Now put a bit more in your pension pot.
Make sure you know about each other’s saving plans and contribution limits.
Keep an eye on your pension to ensure you’re always in full control of it.
Understanding, managing and protecting your pension is crucial in securing a comfortable retirement. At Oury Clark, we pride ourselves on giving accessible, straight talking advice that works for you. Cut the hassle and save time by chatting with a member of our team today.
To find your nearest office or get in touch with one of our specialist advisors to see how we can help your business, please go to our contact page.