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Let's Talk Business

Gender Pay Gap Follows Women Into Retirement

Lady Walking In Red Coat

• Women retiring in 2018 will have almost a third less income than men- nearly £5,000 annually.

• One in six women will retire this year with an income below the Joseph Rowntree foundations minimum income standard. 

•1 in 20 people believe they will live on less than £5,000 a year.

The gender pay gap has been a hot topic in 2018 and it seems women can’t escape it… Even when they retire.

Prudential’s ‘Class of 2018’ study published today shows women retiring this year will have average expected retirement incomes £4,900 lower than men. While the average man can expect an annual income of £21,800, his female counterpart will have to make do with £16,900.

What’s more, findings show that one in six (16%) women will be retiring with an income below the Minimum Income Standard calculated by The Joseph Rowntree Foundation, which states the income for a single pensioner should be at least £9,9982. Just one in 10 (10%) of men will fall into this category.

 

The study does highlight progress being made:

• The expected retirement income gender gap stood at £9,500 in 2008

• It bottomed out in 2015 at £4,800, before rising again to £6,400 in 2017

• Men’s expected annual retirement income has remained fairly stable throughout the 11 years of reporting, however, income for women has increased considerably from £11,300 in 2008 to £16,900 this year

• Across the regions, those in Yorkshire & the Humber have the lowest expected retirement income, at just £14,998

• Despite its portrayal as one of the UK’s most expensive cities, Londoners are expecting below the national average income in retirement at £18,952

• Those in the North West can look forward to the most lucrative retirement incomes averaging £28,784

• Divorcees expect to be over £3,500 (£3,771) worse off each year than those who have never divorced

• 1 in 20 (5%) people believe they will live on less than £5,000 a year

 

Here is what retirement expert Kirsty Anderson said:

Let's Talk Business: Gender Pay Gap Follows Women Into Retirement.

The gender pay gap has been a hot topic in 2018 and it seems women can’t escape it… Even when they retire. Kirsty Anderson, Retirement Income Expert spoke to Biz.