Published: 20/06/2022 By Hannah McCormackWomen live on average longer than men by approximately 4 years states Now Pensions, this ultimately means they would need to save more during their lifetime or work until the age of 83 in order to accommodate a longer time in retirement and have the same pension funds available as the average man.
According to calculations from Now Pensions women at the age of 65 will have a £69,000 pension pot compared to a men’s pension savings of £205,800.
Now Pensions also stated that even though women’s employment is currently at its highest rates, sitting at 72.7%, unfortunately 1 in 6 women are still currently ineligible for automatic enrolment into a workplace pension. This means many women will be missing out on vital pension savings which could potentially cause financial difficulties later in life.
Many women work part time (38%) due to either childcare or personal circumstances which means a smaller pay packet at the end of the month, this makes it harder to accumulate additional savings as well as potentially not meeting the £10,000 eligibility criteria to be automatically enrolled into a workplace pension which in turn gains tax relief from employer contributions.
Research has found that women on average take 10 years out of working to start a family and or care for family and relatives which contributes to the gender pay and pensions gap. Therefore, women are often not in line for promotions, career progressions and or the higher salary brackets a person who has not had a gap in their working life may be entitled to.
For many women it doesn’t make financial sense to go back to work full time or even at all after having a child due to the costs of childcare being equal too or in some cases more than their monthly salary. Sadly, this is creating the bigger gender pay and pensions gap. The average UK pension pot has done well and doubled to £111,600 but for women this is not the case with many actually now worse off than before.
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