Retirement income gender gap grows by £1,000
30 June 2017
The gap between women’s and men’s annual average expected retirement incomes in 2017 has grown by £1,000 in the last year, according to new research from Prudential.
The unique annual research has, over the last 10 years, tracked the future financial plans and aspirations of people planning to retire in the year ahead. This year’s Class of 2017 research shows that women expecting to retire this year will be £6,400 a year worse off on average than their male counterparts, and nearly £200 a year worse off than women who retired in 2016.
Women this year expect an average annual retirement income of £14,300, which is the second highest on record although slightly down on the £14,500 for those retiring in 2016. This year’s female retirees are feeling slightly more confident about their finances; however, with 50 per cent saying they are financially well-prepared for retirement, compared with 48 per cent in 2016.
Meanwhile, as women’s incomes stagnate, men’s expected retirement incomes have shown a fifth consecutive year of growth. Men retiring this year expect an annual retirement income of £20,700 – £900 a year more than last year which is helping drive the gender gap to its highest level for three years.
The Prudential study, which has tracked the retirement income gender gap for 10 years, shows that men retiring this year will be 45 per cent better-off than women. The gender gap was at its widest in 2008 when the average expected retirement income for men was 84 per cent higher than that expected by women.
Kirsty Anderson, a retirement income expert at Prudential, said:
“…For anyone who takes a career break, maintaining pension contributions and, where possible, making voluntary National Insurance contributions after returning to work, should help to minimise the impact on their retirement income. The best way to secure a good quality of life in retirement is to save as much as possible from as early as possible in your working life. Consulting a professional financial adviser to ensure that retirement financial plans are on track is a sensible route for many…”
Read the full press release from Prudential.