According to analysis undertaken by the UK pension provider, Aegon, women by age 50 in the UK have on average pension savings of £56,000 whereas men at the same age have on average £112,000. When both men and women are early on in their careers, the gap was found to be much smaller with women aged 30 having on average £21,029 in pensions saving and men having £27,688. In order to close the gap on men, at age 30, women would only need to contribute an additional £21 each month. However, by age 50 this additional contribution rises steeply to an extra £360 per month.
For woman, gender pay gaps also mean lower pension incomes. This combined with many women taking breaks from employment to raise families or care for elderly parents can result in even wider gaps.
In order to address this issue, the analysis demonstrates how important it is for women to review their UK pension savings alongside their US financial assets at an early age and create a financial plan. A financial plan should consider how much a woman can contribute to her pension and how much she is likely to need to fund retirement. It should also consider the impact of any breaks to employment. Knowledge is key and the earlier a woman is able to identify and address any shortfalls in her pension savings the more secure her financial future should be.