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Mind the pension gap

I have always supported females joining the workforce. However, it saddens me that over 100 years since women secured the vote, a gender pay gap remains in almost every occupation. Worse, this pay gap translates into women receiving less private pension money at retirement. Have you thought about the gender pay gap affecting your pension?

office talking

The figures shout

Research last year by a life insurer shows that a 50-year-old man is likely to have approximately £112,000 of pension savings compared to £56,000 by women of the same age. It found that the average difference between male and female pension saving at the age of 30 is around £6,659, growing to £17,831 at 40.

Closing the gap

The number crunchers estimate that women need to contribute an extra £21 of savings a month to close the gap on men at the age of 30, rising to an extra £360 per month by age 50.

Why the gap?

  1. Women and men have different working patterns; mothers take career breaks to have a family or care for elderly parents.
  2. Women seem less comfortable with savings, as research shows that 28% of women don’t know how much they have currently saved, compared with just 9% of men.
  3. The real culprit for the pension gap is women work in lower paid roles or are paid less than men for doing the same role.

There is no single quick win, but the earlier women can address the saving shortfall, the quicker the pension gap will be eradicated; the tough message is that women must save more.

The top view

The government states that by 2030, more than 3m women stand to gain an average of £550 extra per year because of the new state pension which is more generous for many women. The automatic pension enrolment means the number of women in the private sector without a workplace pension has halved.

ChildMax is affordable way to pay your take home salary while you’re on 12 months’ unpaid leave looking after a sick child. Premiums start from £49.50 or for easy budgeting an initial payment of £8.25 followed by eleven monthly payments of £3.75. Get a quote with 5 questions which takes one minute.

Visit at www.insurewithmax.com or call the UK call centre 0333 323 0098 for more information.

Sources:

http://www.theactuary.com/news/2018/01/gender-pension-gap-leaves-women-with-half-the-savings-of-men-at-50/

https://www.ft.com/content/c9b74996-b582-11e7-aa26-bb002965bce8

Date: 04 March 2019 by Max Robinson