Women face pension gap

Women’s expectations of their financial wellbeing in retirement fall significantly short of what they think they will need to provide a comfortable retirement, according to pension provider Friends Life.

While both genders see a gap between their hopes and the financial reality, the research suggests that women in particular face the greater challenge.

Women said a retirement income of £25,128 would allow them to live comfortably, but that is around £8,000 or 46% more than their expected income from their pension.

Men also face a shortfall in their desired retirement income of £27,832, but only by £6,637 or 31%.

The gender gap between expected pension income is 19% in favour of men.

Figures show the annual retirement income for single men (£17,992) is 23% greater than single women (£14,664).

David Still, managing director of retirement income at Friends Life said: “The gulf between what men and women are saving and what they would need to save to give them the income they want is concerning.”

“While initiatives such as auto enrolment are helping to raise awareness of the need for us all to save for our retirement, we must make sure people are engaged and realistic about what they need to save today to achieve their hopes for tomorrow.”