Why are women on course to have £100,000 less in their pension than men at retirement?

Let’s close the £100,000 #GenderPensionGap.

On average a woman in her twenties today is set to retire with £100,000 less in her pension than a man the same age. To make up the difference they’d have to start work a lot younger.

There a lots of reasons that the average 20 year old women is on course to have £100,000 less in her pension than a man the same age.

The amount people save into their pension is generally a percentage of their salary or income. So anything that reduces your income will directly affect your pension.

Women are more likely to face life events which negatively affect how they save for their retirement.

They’re more likely to take time out to raise a family, manage caring responsibilities, be in lower paid roles or work part time (75% of part time workers are women*).

The gender pay gap also plays it’s part so its really important to raise awareness around how these challenges can impact retirement planning, but we’re here to help and there are things you can do to help reduce the gender pension gap.

* Scottish Widows Women & Retirement Report 2020.

Gareth Shaw, Head of Money at Which?, said: “Our research has shown that women face significant disparities when it comes to saving for retirement, with mothers particularly at risk of retiring with smaller pensions – potentially tens of thousands less over their careers than men and women working full-time.

“To address this imbalance, the government should make a contribution to the pensions of first-time parents to ensure they can retire with an adequate pension pot.”