According to the report, the average man will retire on £18,000 a year, whereas the average woman will receive only £12,250.
However, not all is doom and gloom. Figures show that, although there is a long way to go, the gender gap is gradually closing. In 2009 men expected to earn £6,425 more than women, whereas the difference today is slightly less at £5,750.
Prudential conclude that the narrowing gender gap can be attributed to a reduction of men’s expected retirement incomes, rather than an increase of women’s expectations.
Prudential’s retirement income expert Vince Smith-Hughes 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 this year hit a five year low for both men and women. The practical steps that women can take to improve their retirement income prospects include maintaining pension contributions during career breaks and, if possible, making voluntary National Insurance contributions after returning to work.”
If you would like help planning for your retirement, you may be interested in our Personal Finance page, which details how an accountant will help you.
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