Ladies, make sure you mind the pensions gap
There is a glaring gender gap when it comes to pension savings – a gap which grows as women age and means many face the prospect of spending their so-called “third life” in poverty.
There are many factors behind this gap, ranging from the fact that women still pay a higher “parenthood penalty”, to the gender pay gap, and even the way retirement products are designed.
While the number of men reaching the oldest ages is increasing, women still outlive their male counterparts.
And here’s the rub: if women live for longer than men, logic dictates that we should have larger pension pots to ensure our income in retirement lasts for as long as we do. But this couldn’t be further from the truth.
In fact, as the Cridland Report into the state pension age points out, women are projected to have around a 25 per cent lower income on average than men in their first year of retirement.
Read full news here: City A.M.
