Unless something is done to tackle the problem, millions of people stand to lose thousands of pounds worse off than their male counterparts, according to a Profile Pensions study. Analysis of the pension expert’s own data on more than 20,000 clients aged 22 to 66 shows that the pension gap between men and women is largest in the north of Scotland.

This is where men’s pension funds are almost 50% larger than women’s.

On average, men in the north of Scotland have an average pension value of £ 41,603.

This is almost double the average value of pensions for women, at £ 20,978.

The gap is also very wide in East Anglia – where the average pension value for men is £ 45,429.

Meanwhile, the average pension value for women is 49 percent lower, at £ 23,391.

READ MORE: Virgin Money Offers Brits 2% Interest Rate With Account That ‘Keeps Giving’

Greater London is the region with the smallest gender pension gap, where the average pension amount for women is 30% higher than the national average for women.

That said, London is the country with the largest retirement wealth, with men on average having £ 9,000 more in their retirement pot.

Michelle Gribbin, Director of Investments at Profile Pensions, said: “What we unfortunately see with these results is that the gender pay gap and the gender pension gap go hand in hand.

“Men, on average, earn more than women and can therefore save and receive larger contributions from employers in their pension fund.

“It is clear that much remains to be done to help women gain the security they need to retire.

“Under current UK law, employers contribute 3% to employees’ pensions, 4% come directly from their payroll and the remaining 1% is offset by tax breaks.

“Employees can reduce or increase this amount at any time they see fit.”

Speaking exclusively to Express.co.uk, Ms Gribbin said: ‘This research makes us aware of the amount of work to be done around equality, the gender pay gap and the gender pay gap. remuneration of pensions.

“The pension pay gap is due to the majority of better paid roles held by men, and the proportionately smaller amount contributing to their own pension fund.”

She added: “There is still a lot of work to be done to ensure that the gender pay gap is closed, giving UK women the security they need when they retire.”

So what does Profile Pensions suggest for those hoping to reduce the impact of individuals affected by the gender pension gap?

Samantha Packham, retirement advisor at Profile Pensions, said joining an occupational pension as early as possible was her best advice.

“Don’t wait to be invited – if you don’t ask, you don’t get,” she told Express.co.uk.

“Now that the automatic enrollment programs are in place and working, no one can deny that employers play an important role in building our retirement pots.

“The normal age at which an employee is invited to join his work pension is 22 years old.

“However, the vast majority of employees have the right to choose their workplace from the age of 18.

“By applying to join the occupational pension before the default age of 22, not only will workers benefit from the money they pay, but they will also receive employer contributions and tax breaks, effectively doubling the costs. contributions.

“By switching to 18 instead of 22, that’s four more years of ‘free money’ from your employers.

“As with most things in life, if you don’t ask, you don’t get.”



Source link

Leave a Reply

Your email address will not be published.