Gender gap of £6,500 for women's pensions
Women may be striving for equality in the workplace, but are still second-class citizens when it comes to pension provision, according to new figures.
The Daily Telepgraph reports that women retiring this year will get a pension that is £6,500 less than that paid to men. According to Prudential women retiring this year can expect an annual income of £12,900. In contrast a man retiring can expect an income of £19,400.
There is some good news for women though as this "gender gap" is narrowing. The same study published last year showed that women's pensions were lagging men's by £7,400.
Vince Smith-Hughes, Head of Business Development at Prudential said: "It is good news that average retirement incomes for women have risen, but unfortunately the gender gap remains stubbornly wide.
"There are a number of actions that women can take to help to boost their retirement income. For example, it is a good idea to maintain pension contributions during any career breaks and to explore making voluntary National Insurance contributions after returning to work.
"It is imperative for anyone looking to secure sufficient retirement income to start saving as much as they can, as early as they can and to seek professional financial advice in the run up to retirement."
This Prudential study also found that almost one in three women planning to retire this year do not have either a private or a company pension scheme in contrast just 10pc of men are in this position.
But these national average mask significant regional variations. The gaps between women and men's pensions is widest the South West of England, where the gap is £11,700 a year. In this region women retiring can expect an annual income of just £10,400 a year while men can look forward to collecting £22,100.
Surprisingly though, in the South East, there is no gap at all – with both men and women retiring this year on track to receive an average of £18,100. Experts said this was largely due to higher employment figures in this region.