Pension Pay Gap Woes
Research from Profile Pensions has revealed that the pensions gap between men and women, is far worse than the gender pay gap, which is attempting to be rectified.
During their research, Profile Pensions analysed over 20,000 customers and discovered that on average women in the UK face retirements with 39% less in their pension pot than men.
According to the Office of National Statistics, this is more than double the average 17.3% discrepancy between male and female salaries.
Women in North Scotland are the worst effected, as they hold less than half as much in their pension pot as their male counterparts.
Although it isn’t much of a bridge between the gap, London and West Midlands women are getting a better deal than the rest, with only a 30% gap in their pots.
Michelle Bribbin, Chief Investment Officer at Profile Pensions, said:
“Our analysis lays bare the huge disparity between male and female pension pots. This gender pensions gap is endemic in our society, born out of hundreds of years of cultural factors such as salary discrepancy. There is a lot of awareness around the gender pay gap but we also want to highlight the huge disparity that many women approaching retirement are facing.
“We would like to see providers and employers being more transparent about how this retirement shortfall comes about. For example, what seems like slightly lower pension contributions (due to factors including a lower salary), invested over the long-term generate a sizeable financial shortfall. A heightened awareness of pensions is the best way that we can make sure this gap narrows. Figures like today’s should be a wakeup call to women across the UK to take action and make sure that they manage what savings they do have to reach their best potential.”
What do you think could be done to address the pension gender gap?