Women still lag behind in pension savings

There is a growing gap between the pension savings and payments of men and women, according to research.

When it comes to state pension incomes, women who retired before 2016 get £146.78 a week on average, while men receive £172.71.

Under the current state pension, women get £165.05 on average and men receive £170.49.

The figures were revealed in research from the Pensions Policy Institute (PPI), an independent research organisation.

When it comes to private pensions the gap is even larger between men and women. On average women would need to work an additional 20 years to achieve parity with men’s average private pension savings.

In 2021, the typical man had £205,800 in his private pension pot at the age of 65, while the typical woman had £69,000, according to the figures.

Several reasons explain the pension gender gap. First of these is that on average women earn less overall during a working career.

They are also more likely to take on part-time roles that leave them outside opportunities to join workplace pensions, due to lower earnings.

However, the most significant factor is breaks in work due to children and care.

If you are concerned about your possible future pension payments or looking for advice on how to maximise your contributions, then speak to an Independent Financial Adviser.