UK - A large proportion of British women face poverty in retirement because they are not contributing sufficient amounts to pensions, according to an Association of British Insurers report published today.
The report titled: The Gender Pensions Gap – encouraging women to save for retirement reveals up to 4.5m working women do not save enough for retirement and another 4.5m are not saving at all, the ABI said.
ABI head of pensions and saving, Joanne Segars said: “We all know about the gender pay gap. Today we are highlighting the gender pensions gap. It is just as wide and just as important.
“The pressures on women today are immense. We are less likely to be in employment, we tend to have lower wages and we are more likely to spend our disposable income on our children.
“But increased pension saving is vital if women are to have a decent income in retirement.”
As well as highlighting women’s attitudes to pension saving, the report shows that women are specifically disadvantaged compared to men when it comes to pensions.
More women than men don’t belong to a pension scheme and of those who do, more than half contribute less than £100 per month to their pension. Only 9% of women receive an employer contribution of more than 5% of wages, compared to 15% of men and 83% of retired women have a total personal income of less than £1000 per month compared with 58% of men.
“Women are clearly at greater risk than men of facing poverty in their retirement,” Segars said.
“The savings industry, government and employers must work together to help women save for a decent income in retirement.”
The report also suggests a number of ways pension saving could be encouraged, particularly amongst women.
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