Women’s pension income a third lower than men’s

Women retiring this year face a gaping gender gap in their annual pension income compared with men.

Research has shown women in Yorkshire will retire on an average of £10,099 – nearly a third less than the £14,783 expected by their male counterparts.

Nationally, the gender gap is even wider according to Prudential’s Class of 2012 study into the finances and expectations of those planning to retire this year.

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The financial services company found the average British woman expects an annual pension income of £12,250 compared with £18,000 for men – a gender gap of £5,750, compared with £4,684 in Yorkshire.

The research revealed the national pension gender gap has fallen from £6,500 last year, but the narrowing of the gap has been put down to men’s incomes falling rather than women’s incomes increasing.

Expected incomes for those retiring this year are at a five-year low, averaging £15,500 nationally and £12,814 in Yorkshire.

Vince Smith-Hughes, Prudential’s retirement income expert, said: “The pension gender gap appears to be narrowing, but there is still a long way to go. Not only does the gap remain stubbornly wide, but anticipated retirement incomes have hit a five-year low for men and women.”

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Women can improve retirement income prospects by maintaining pension contributions during career breaks and making voluntary National Insurance contributions after returning to work, he said.

He added: “It is imperative for anyone looking to secure a sufficient income when they retire to begin saving as much as they can, as early as they can, and to do so regularly through life. For those still working, it has never been a more important time to save into a pension.”