The UK gender pension gap is 38% on average
Research by PensionBee has found that depending on age and location, the UK pension gap between men and women can be as high as 57%.
The online pension provider found that UK men saved Â£ 24,236 for retirement, compared to just Â£ 15,006 saved by UK women, representing a 38% gap in their retirement pot size.
The biggest gap of 57% is in Northern Ireland, with average retirement savings for men totaling Â£ 17,883 compared to Â£ 7,737 for women. The North East and South West of England both have deviations of 46%, with men saving Â£ 20,514 compared to women Â£ 11,177, and men saving Â£ 24,641 compared to women saving 13,326 Â£ respectively.
Meanwhile, those living in Greater London have the lowest gender pension gap of 28%, with men saving Â£ 24,853 and women saving Â£ 17,863.
The research, which analyzed data from more than 65,000 people, also found that the gender pay gap widens with age. He found a 46% gap among people aged 50 and over, with men and women saving Â£ 52,592 and Â£ 28,249 respectively. This is more than double the 18% gap for savers under 30, with men and women with pension funds of Â£ 3,925 and Â£ 3,215 respectively.
Romi Savova, CEO of PensionBee, said it was “incredibly disappointing” to see that where a pay gap exists for women, a pension gap will follow.
âAt the same time, women saving should be encouraged to continue contributing to their pension, even when they interrupt their paid employment or work reduced hours. Women are more likely than men to take time off work to care for children, and many women stop contributing to their pension while on maternity leave. The combination of lower wages and long career gaps, with little or no retirement savings for years, is a huge disadvantage for women, âshe said.
“The benefits of compound interest and HMRC’s tax caps make a pension an attractive long-term investment, and the more women can contribute to their pensions now, the more they will be able to improve their quality of life in retirement.” , added Savova.
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