Three Key Industries
According to the research, the gender pensions gap exists regardless of average pay across different sectors, and ranges from a gap of 59% in the healthcare industry, to 13% in courier services.
The healthcare (59%), construction (51%), real estate/property development (48%), pharmaceutical (46%), aerospace, defence and government services (46%), and senior care (45%) sectors were found to have the largest gender pensions gaps. Of these six sectors, three are key industries for female employment – healthcare, pharmaceuticals and senior care.
Lower Pension Contributions
There are many reasons for the gender pensions gap, ranging from women holding fewer senior positions and being paid less, resulting in lower pensions contributions, to the fact they are more likely to take career breaks due to caring responsibilities.
Of those that have taken a career break, 38% did not know the financial impact it had on their pension contributions.
Gender Financial Confidence Gap
Another potential driver is a significant gender confidence gap when it comes to managing pension pots: only a quarter (28%) of women said they had confidence in their ability to make decisions about their pension, compared to almost half (48%) of men.
This lack of confidence extends further to other financial decisions, with women less likely than men to feel confident managing their investments (22% of women versus 41% of men), and their savings (56% of women versus 67% of men).
While many factors are out of your control, here are the actions you can take:
- Contribute as much as you can to your pension – and start early. Compound interest remains hugely underrated and poorly understood by both some men and women.
- Check the charges on your historic pension pots. If appropriate, see if consolidating your pots will bring them down.
- Check how much your State Pension will be and when you’ll get it. If it’s not going to support your ideal lifestyle, plan how you’ll cover any shortfall.
- Put a bit more into your pension whenever you get a pay rise.
- Talk through your pension planning with your partner. Make sure you know about each other’s saving plans, contribution limits and that you are both on the same page.
- Keep a regular eye on your pension to make sure you’re in full control of it and saving for your ideal future
There are many reasons for the gender pension gap, ranging from women holding fewer senior positions and being paid less resulting in lower contributions and also due to the fact they are more likely to take career breaks due to caring responsibilities.
Need financial advice to close the gender pay gap in your pension?
Women often have disrupted work patterns, career gaps and work part-time – this can impact their ability to save consistently for retirement without savings gaps.
If you are concerned about your retirement plans and would like to review your pension options, please do contact us. We look forward to helping you.
Try our pension calculator
It is estimated very few of us realise just how much we need to be saving into our pensions and the level of income our pensions will provide. Use our pension calculator to help you understand the level of contributions you need to be making in line with your retirement aspirations.