Retirement income gender gap widens


The gap between women’s and men’s annual average expected retirement incomes in 2017 is at its highest level for three years, according to new research from financial services group Prudential.


The study shows that women expecting to retire this year will be £6,400 a year worse off, on average, than their male counterparts. Last year the gap was £5,300, while in 2015 it was £4,800.


Women retiring this year will be nearly £200 a year worse off than women who retired in 2016.


Women this year can expect an average annual retirement income of £14,300, which is the second highest on record although slightly down on the £14,500 for those retiring in 2016. 


This year’s female retirees are feeling slightly more confident about their finances, however, with half (50%) saying they are financially well-prepared for retirement, compared with 48% in 2016.


Meanwhile, as women’s incomes stagnate, men’s expected retirement incomes have shown a fifth consecutive year of growth. Men retiring this year expect an annual retirement income of £20,700 — £900 a year more than last year. That growth has helped drive the gender gap to its highest level for three years.


www.pru.co.uk/pdf/press-centre/20170628-co2017-gender-gap.pdf