With so much media attention currently being given to the disparities between men’s and women’s salaries within large organisations, and equal pay for equal value issues in general, you may not be surprised to learn that the gender gap in pension funds is also a cause for concern.
Research by Aegon, one of the world’s leading providers of life insurance, pensions and asset management, shows that women accumulate, on average, £56,000 in their pension funds by 50 years of age, compared to £112,000 saved by men. Factors including a systemic gender pay gap and time spent out of employment to raise children, means that women are less able to build up pension pots.
Commenting on the results, Aegon’s head of pensions, Kate Smith, said; “It’s shocking that 100 years after women secured the vote, we have a gender pay gap across every occupation.” She went on to say; “When you factor in that women’s ability to save is further interrupted by breaks in their career to raise a family or care for elderly parents, the pension gap reaches epic proportions, making it difficult to catch up. Gaps in pension savings history leave you worse off in retirement — but for women who take time out of their career this is unavoidable and could mean they have to work longer to make up the shortfall.”
The danger of potentially running out of money in retirement is of concern to us all – and it is vital that both employers and employees have a clear strategy in providing effective pension provision. Here at The Financial Planning Group, as well as advising individuals on pension planning, we have extensive experience in providing support to our own corporate clients and those of our accountant and solicitor partners.
We explain when the pension responsibility starts and how the implementation works. We can provide clients with a workforce audit and projections of the cost impact to allow for effective cash flow management as well as advising on pension schemes and provide effective implementation strategies and employee communication.
If you would like to arrange a pension or investment consultation, please call Tim Norris or Alan Clifton on 0800 731 7614 and we would be delighted to arrange a meeting at our offices in the heart of Teddington.