Women approaching retirement are on track to receive an income of just £12,000 a year on average after paying income tax and housing costs, compared to £17,000 on average for men.
The gender gap in pensions has fallen from 52 per cent since 2008 for those aged 50 to 64, but remains substantial at 33 per cent, a report by pensions firm Scottish Widows reveals.
If progress continues at this pace, it will take another 20 years for women to retire with the same annual income as men, he warns.
Inequality: The gender gap in pensions has decreased from 52% since 2008 for people aged 50 to 64, but remains substantial (33%), a report by pensions company Scottish Widows reveals.
Women’s lower retirement income means millions will fall short of the £14,400 that the industry body the Pensions and Lifetime Savings Association (PLSA) says is needed for a minimum standard of living. during retirement.
This level of income would allow someone to spend a week’s holiday in the UK each year, £50 a week for groceries and up to £630 a year for clothes and shoes.
Up to 42 percent of women are at risk of facing poverty in retirement, compared to 35 percent of men.
Women are also much less likely to be headed toward a comfortable lifestyle: 28 percent compared to 35 percent of men.
A comfortable retirement costs around £43,100 a year, according to the PLSA, and allows for £70 a week on groceries, as well as £100 a month for dining out, a small car for three years and a fortnight for four years. star vacation in the Mediterranean.
Scottish Widows proposes that couples should be able to collectively build up retirement savings in a “family pension scheme” to help close the gap.
Jackie Leiper, CEO of Scottish Widows, says: ‘The pace of change must accelerate; We simply cannot sit and wait another two decades. “If more action is not taken, the gender pension gap will never close.”