Men expect to retire on average incomes of £19,400 a year – 50 per cent more than women who anticipate incomes of £12,900. But Prudential’s Class of 2011 study shows the retirement gender gap is £900 smaller than last year
Men retiring in 2011 expect to receive 50 per cent more pension income than women, according to new research from Prudential. Prudential’s Class of 2011 research surveyed people planning to retire this year and found that the retirement income gender gap is £6,500. The average woman retiring this year expects an annual income of £12,900 compared with an average male expected income of £19,400. There is some good news for women though as the retirement income gender gap has shrunk since last year when Prudential’s study showed a £7,400 gap with women expecting incomes of £12,200 while men looked forward to £19,600. However, women who planned to retire in 2009 expected an annual retirement income of £13,700.
The research found that people planning to retire in 2011 expect to have an average income of £16,600 – marginally higher than 2010’s figure of £16,500. Vince Smith-Hughes, Head of Business Development at Prudential said: “It is good news that average retirement incomes for women have risen, but unfortunately the gender gap remains stubbornly wide. “There are a number of actions that women can take to help to boost their retirement income. For example, it is a good idea to maintain pension contributions during any career breaks and to explore making voluntary National Insurance contributions after returning to work. “It is imperative for anyone looking to secure sufficient retirement income to start saving as much as they can, as early as they can and to seek professional financial advice in the run up to retirement.”
The retirement income gender gap is at its widest in the South West of England where retired women expect £11,700 a year less than men. Meanwhile in the South East of England the expected retirement incomes for men and women are essentially equal. The Prudential study also found that 28 percent of women planning to retire this year have no savings in private or company pension schemes compared with just ten percent of men.
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