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Women have an average of £695 less a month in retirement compared to men, research shows due to the gender gap in pensions.
Their pension funds are about 27 percent smaller than those of their male counterparts, according to a study by financial services firm Legal & General and the Happiness Research Institute think tank.
The research found that male and female pensioners with an average monthly income of around £1,700 are the most likely to be happy, but only 38 per cent receive an income of this level or above.
Women are less likely to achieve this, says Legal & General, with around 28 per cent living on less than £1,000 a month compared to 14 per cent of men.
Pension gap: Women have an average of £695 less per month in retirement compared to men
The Pensions and Lifetime Savings Association (PLSA) says a single person needs £43,100 a year for a comfortable retirement. An income of £1,000 a month would be below even the minimum amount of £14,400 a year recommended by the PLSA.
However, the report found that higher income had a less significant impact on women’s happiness compared to men, who showed greater happiness as their income increased.
Katharine Photiou, of Legal & General, says: ‘Women have less to live on than men when they retire, making it difficult for them to cover the cost of essentials. But what’s fascinating is that our research showed that women are often better at not letting a lack of money get them down and finding other ways to stay happy, like building stronger connections.’
Last week was “equal pay day”, from which women effectively work for free until the end of the year due to the pay gap.
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