Ellis Bates Financial Advisers
We have all heard about the gender pay gap, but very few discuss the gender pension gap, despite the fact so many women experience it. Women’s pensions at retirement are half the size of men’s, regardless of the sector they work in. The gender pension gap is the percentage difference in income between men’s and women’s pensions and it begins at the very start of a woman’s career.
The research found that every single industry in the UK has a gender pensions gap, even those dominated by female workers. Considering women are likely to live four years longer than men, this issue deepens as they need to have saved around 5% to 7% more at retirement age.
Worryingly, more than a third (38%) of women who have taken a career break were not aware of the long-term financial impact it would have on their pension.
Carol Lammy-Steele, Financial Planner at Ellis Bates
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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.
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.
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:
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.
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.
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.
“I was very confused about my pensions when I retired recently, and I contacted Ellis Bates who were recommended by the Pension advisory Service, they have been very helpful in the amalgamation of my Pensions into a more simplified drawdown pension. Carol Lammy-Steele has been very professional and helpful during the process and always there any time of the day to give advice, would recommend her to anyone who needs help with financial questions.”
“I had never used a financial advisor but he was helpful, knowledgeable, and seemed very good at what he did. He helped me understand my pension which I hadn’t done in all the years that I have had it. Very good indeed.”
The industries that have the largest gender pension gap 59% Healthcare 51% Construction 48% Real estate/property development 46% Pharmaceutical 46%…
read moreFinancial Planner, Carol Lammy-Steele, discusses why women are less likely to seek financial support from a Financial Adviser.
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Women’s pensions at retirement are half the size of men’s The gender pensions gap is the difference in the average…
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