A recent report by pension provider the Prudential has uncovered evidence that the average female pension is £7,000 less than the equivalent male pension. According to the data, an average male this year will receive an annual pension income of £19,593, while a woman will receive just £12,169. There was also a geographical variance of up to £5,000 for both men and women, dependent on where in the country the pensioner lived. The gap between male and female pension incomes is being blamed on the fact that women can miss out on a full state pension as they often stop employment when they have children or choose part time work instead.
The results of the 6,000 people who were quizzed confirmed the long standing difference in income for men over women but gave no clue as to why this gap would be widening. Karin Brown is works in the annuities department at Prudential says that…“…the reason women appear to get less in their pensions than men is embedded in years of history and, to a certain extent, because some women take a career break to have children which has an impact.” Later this year the government is expected to implement reforms that will help make female pensions more fair and more generous.
Receiving the full state pension is based on someone making NI contributions of either 44 years or 39 years, for men or women respectively. But anyone who reaches the standard pension age on or after 6 April 2010 will only have to have contributed for 30 years or more under new guidelines. Pension experts advise that people should start saving for their pension as early as possible.
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