Gender Pensions Gap Now At £180,000

Research by equity release provider more2life has found that the gender pensions gap is still increasing.

It estimates the pension fund gap now amounts to £183,936.

The analysis found that the average male can expect a total pensions income in retirement of £20,712pa whereas an average female can expect £14,964.  This is despite the fact that men only contribute on average 8.3% of their income compared to women at 9.4% of income.

Given that average earnings are higher for men than women, men still contribute more overall hence the gap.

To buy an annuity income to fund the pensions income gap, women need to accumulate an additional £183,936 in pension funds to make up the difference.

Comment

This will always be a ‘tough nut to crack’.  Many women do take career breaks or indeed part time work whilst having families and even though movement is being made to improve wages, career progression and diversity across all industries, it will take a generation at least to make a real difference and even then, many women may still want to take breaks to bring up families.  That said, we do anticipate more men looking to do the same to release women better placed career wise.

The best thing we can all do and indeed with this research is to take heed of it and raise it with our employers, partners, advisers and clients alike to plan earlier for any gender pensions gap.