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Gender pay gap – what does this mean for pensions?

Research suggests that the average woman in her twenties today will retire with £100,000 less in her pension than her male peers. 

If women want to close their gender pay gap, experts say they have to work around an extra 40 years, as women have lower average earnings, a higher likelihood of working part-time and a more substantial childcare burden.

However, the Government states its pensions reforms have already helped millions of women save for retirement. 

Their research reveals that over 15 years of their careers, women save an average of £2,200 per annum, whereas men can save an average of £3,000. 

If women want to close the pay gap on their pension savings, they could increase their pension’s contributions at the start of their careers by five per cent, according to experts.

A spokesman for the Government’s Department for Work and Pensions says their “ground-breaking pension reforms, including automatic enrolment, have helped millions [of] more women save into a pension, many for the first time.

“Pension participation among eligible women working in the private sector has risen from 40 per cent in 2012, to 86 per cent in 2019.”

For more information or advice on pension-related issues such as contributions, please get in touch with your Seymour Taylor representative or contact us on 01494 552100.

This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at time of publishing on 10 March 2021.