Labour Research July 2012

Equality news

Pension gender gap ‘narrows’ this year

The good news is that the gender gap in expected retirement incomes has fallen. The bad news is that the gap has closed mainly because of a fall in male pensions. And the gap is still very high, according to research by Prudential.

The Pru’s study into the finances and expectations of those planning to retire this year found that the average woman expects an annual income of £12,250 in retirement, compared with an average expected income of £18,000 for men. That puts the pension gender gap down to £5,750 against £6,500 last year and £7,400 two years ago.

Vince Smith-Hughes, the Pru’s retirement income expert, said: “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.”

Dr Ros Altmann, director general of Saga, said women have consistently been the “poor relations” to men when it comes to pensions, but government reforms should go towards making the system fairer.