Gender pension gap widening in the UK but experts say women can protect themselves while raising children |
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| News - Savings | |||
| Written by Ray Clancy | |||
| Wednesday, 17 February 2010 09:18 | |||
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The figures show that women’s pensions have fallen by 11% since 2009 and the pension income gender gap has widened by £782 since 2009, the research from Prudential shows. The gap continues to grow despite a decrease in expected pension incomes as a whole over the last year. In 2009 men expected to collect an annual pension of £20,313, down 3.5% to £19,593 for 2010, while women expected to collect £13,671, down 11% to £12,169 for 2010. There are also regional differences. Around the UK the average annual pension those retiring in 2010 expect to receive varies by £5,000, with those living in the South East expecting the highest annual income at £19,275 and people in the South West expecting the lowest income at just £13,871 per year. ‘The reason women appear to get less in their pensions than men is embedded in years of history and, to a certain extent, because some women take a career break to have children which has an impact,’ said Karin Brown, director of pensions and annuities at Prudential. But she said that there is plenty of scope for women who are working and contributing to a pension to help reduce this deficit in future. ‘By talking to your employer you can find ways of boosting pension savings and maximising the tax advantages that pension savings can bring,’ she explained. One major cause of the gender gap in expected pensions is that women take a career break to have children, but it is possible to protect future pensions and maintain a pension during this time, she added. ‘Women who take a career break to have children can safeguard their state pension with home responsibilities protection but this must cover the full tax year from April to April, so July to July, for example, would not count. Women can also buy back any missing National Insurance contributions,’ said Brown. ‘Women could also consider trying to keep up any company or private pension contributions even if they are on maternity leave or an extended career break - or ask their spouse or partner to make contributions for them,’ she added. Add this page to your favorite Social Bookmarking websites          
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