Women over £6k a year worse off than men in retirement

by Gill Montia

Story link: Women over £6k a year worse off than men in retirement

Prudential has revealed some shocking statistics highlighting the discrepancy between the pension incomes of men and women.

The Prudential Class of 2009 retirement survey suggests that the estimated 2.76 million women in the UK who plan to retire this year expect to receive an average pension income £6,642 behind that of their male peers.

For women, the average pension expectation is £13,671, while the 3.95 million men who plan to retire in 2009 expect to collect an average pension of £20,313.

According to the insurer, the gender biased shortfall totals over £42 billion.

In addition, 18% of female respondents told the survey they plan to continue working beyond the current female statutory retirement age of 60.

However, only 5% of men anticipated working past their 65th birthday.

Prudential’s annuities business director, Karin Brown, points out that women have historically been less well paid than men, currently by around 17%.

In addition, women can miss out on personal and state pension contributions when having children.

Ms Brown recommends that everyone should start a pension at an early age but most particularly, women.