Women can still act to close pensions gap

One hundred years after some women secured the vote, but a gender pay gap still exists across every occupation. This, combined with disrupted working patterns, also means women’s pension saving lags behind that of men.

One hundred years after some women secured the vote, but a gender pay gap still exists across every occupation. This, combined with disrupted working patterns, also means women’s pension saving lags behind that of men.

By the time they are 50, women have on average built up savings of £56,000, only half that saved in men’s pension pots, which is nearly £113,000. 

Gaps in pension savings leave you worse off in retirement. But for women, who often take time out of their career to raise a family or care for elderly relatives, this is unavoidable. It could mean working longer to make up the difference.

Trying to catch up is difficult. But it pays to address these shortfalls as quickly as possible because the gap grows dramatically over time. At age 30, women need to contribute an extra £21 a month to close the gap on men, but by age 50, £360 extra is required every month to catch up. So addressing this sooner rather than later is key.

It is hardly surprising women are less confident about retiring comfortably. But it is important that women do not lose heart. A number of things can be done to address the situation. The first step should be to review current savings and make a plan.

One hundred years after some women secured the vote, but a gender pay gap still exists across every occupation. This, combined with disrupted working patterns, also means women’s pension saving lags behind that of men.

By the time they are 50, women have on average built up savings of £56,000, only half that saved in men’s pension pots, which is nearly £113,000. 

Gaps in pension savings leave you worse off in retirement. But for women, who often take time out of their career to raise a family or care for elderly relatives, this is unavoidable. It could mean working longer to make up the difference.

Trying to catch up is difficult. But it pays to address these shortfalls as quickly as possible because the gap grows dramatically over time. At age 30, women need to contribute an extra £21 a month to close the gap on men, but by age 50, £360 extra is required every month to catch up. So addressing this sooner rather than later is key.

It is hardly surprising women are less confident about retiring comfortably. But it is important that women do not lose heart. A number of things can be done to address the situation. The first step should be to review current savings and make a plan.

Readiness research on more than 2,000 18-65 year olds

 

Source: Aegon Readiness Research and Confidence Survey

Readiness research on more than 2,000 18-65 year olds

 

Source: Aegon Readiness Research and Confidence Survey

Readiness research on more than 2,000 18-65 year olds

 

Source: Aegon Readiness Research and Confidence Survey

Readiness research on more than 2,000 18-65 year olds

 

Source: Aegon Readiness Research and Confidence Survey

Readiness research on more than 2,000 18-65 year olds

 

Source: Aegon Readiness Research and Confidence Survey

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