Women retire at a fifth the size of men, but can narrow this gap by taking practical steps to stimulate retirement savings, according to a new guide.
The retirement gap at retirement is much larger than the 18% gender pay gap recently revealed by the government.
That is because, in addition to having lower salaries, women have a career break more often than men, work part-time and have responsibilities, explains financial advice agency LEBC.
The tips for women to ensure that they get a decent pension savings scheme include maximizing tax benefits, tracking contributions during maternity leave, merging old pension pots and claiming state pension credits.
Wage and pension gaps: women can try to ensure that they are paid the same as men and that they offer more opportunities for old age
At the age of 65, women have an average retirement savings of £ 35,800, about 20 percent the size of £ 179,000 pots owned by men, a report from the Chartered Insurance Institute revealed last October.
Meanwhile, the last 17.9 percent gender pay gap, published by the Government Equalities Office using ONS figures, has hardly shifted from 18.4 percent a year earlier.
& # 39; Women who take on a caring role for the family do not have to sacrifice their own financial well-being to do so; they must ensure that part of the family budget is reserved for their future & # 39 ;, says Kay Ingram, government policy director at LEBC.
& # 39; This not only benefits them during their retirement, but also for their partners. A couple is better off with two pensions that finance their retirement than relying on one. & # 39;
Ingram, which is the guide & # 39; Gender Pension Gap – A practical guide on how to close it & # 39; has written, adds that women can try to ensure that they are paid the same as men, and that they can make more extensive provisions for old age.
& # 39; We have wiped out our gender pay gap within a year! & # 39;
The employer of the financial enterprise reveals three important steps for small businesses to tackle wage inequality – read more here.
& # 39; Women need to be proactive in demanding a revival, promoting themselves and even wanting to work flexibly or part-time, not excluding themselves from opportunities that could lead to career development, & # 39; she says.
& # 39; Women seem to have a tendency to expect recognition of their achievements and hard work from their employer without stressing their contribution and potential for the employer.
& # 39; Men are generally more adept at doing this and will often exaggerate their contribution and potential, while the women who have done the hard work have the honor and hope the boss will see through this.
& # 39; The largest contribution to the equality of women at work does not come from the workplace, but from home. My best tip is to choose a partner who considers your career and aspirations as important as his and thinks his role as a parent is just as important when it comes to his own ambitions at work. & # 39;
LEBC & # 39; s advice to women on how to improve their pensions – many of which will also be useful for men – include:
Retirement growth: starting early means you enjoy it compound effect of investing over long periods. The figures above are based on investing up to the age of 65 with a total contribution of £ 125 per month – but £ 100 when you take the top-top tax reduction into account (Source: LEBC)
* Make sure that you continue to contribute to a pension plan during a career break
* Before taking breaks, you maximize your pension savings and clear up your annual allowances from previous years
* Always ask about the pension scheme when starting a new employer
* Do not leave old employer's pensions and try to consolidate them with new ones
* Stay enrolled in a pension during maternity leave, because if you save money in the short term, you are more about lost employer contributions and tax relief than you save
* Claim free credits for the state pension by registering for child benefit, even if your family earns too much to receive the payments
* Claim the Marriage allowance and childcare allowance of up to 20 percent of childcare costs, as this free money will help make retirement savings affordable
* If you buy an annuity when you retire, go shopping because the annual pensions can be up to 8.34% more if you are healthy, 17.17% if you are a smoker and up to 50% more if you are in poor health .
Women are unfortunately not prepared for retirement compared to men, according to separate data published last summer by financial giant Aegon.
It turned out that 15 percent of women have no pension plans compared to 11 percent of men, and 6 percent of women think that sufficient money has been reserved compared to 13 percent of men.
Meanwhile, research showed that one in three women was unsure of how much they had saved for retirement compared to one in five men.
In response, Aegon has created a 10-step task list that everyone – women and men – can follow to arrange their retirement.
A study by AJ Bell pointed to an average-paid woman taking a two-year interruption of motherhood from work, which could shorten their retirement pot by £ 25,500.
Mothers can reduce the blow to their savings if they are still paying retirement benefits from their lower maternity allowance – forcing employers to keep worrying about their usual full top-ups.
AJ Bell believes that a woman who takes a five-year break to look after children and then works part-time loses £ 100,000 in retirement.
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