Women hit with ‘double whammy’ of lower wages and pension savings

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Women are saving significantly less than men for their retirement, according to new data.

New research carried out by interactive investor is shining new light into the gender pension gap.

A survey of 2,000 adults found that women pay £57 less into their pension on average than men each month.

This is 28 percent less on average with the total pension contributions for women, including employer contributions being £114 under the average for men.

Retirement savers between the ages of 35 and 54 pay under £75 each month than their younger counterparts aged 18 to 34.

Furthermore, these middle-aged pension savers contribute £169 less to their pension each month on average than younger pension savers, including employee and employer pension contributions.

In the wake of the cost of living crisis, retirees have struggled to get by with rising inflation and energy bills.

Alice Guy, the head of Pension and Savings at interactive investor, broke down the “gulf” between men and women when it comes to retirement savings.

She explained: “The figures reveal a stark divide between the pension haves and the have-nots, with nearly half of both women and men contributing less than £100 each month to their pension.

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“At the higher end of pension contributions, men are doing better than women, with over on fifth of men contributing more than £250 to their pension each month, compared with only one in eight women.

“Overall, there is a huge gulf between men’s and women’s pension contributions, which makes it much more difficult for women to achieve a comfortable retirement in the long run.”

These findings are reflected in DWP research, which shows that women have a 35 percent pension gap, compared to men once they reach 55.

This is the minimum age that someone can start drawing their pension.

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The retirement expert noted that the issue regarding pensions is compounded for women when factoring in the wage gap and additional costs.

Ms Guy added: “It’s often a double whammy for women as lower wages combine with increased costs to make it harder to keep up with pension contributions.

“It’s important for women to try to keep their pension contributions going in mid-life, particularly if they reduce their hours.

“Even small amounts can add up to a decent retirement income, especially with an additional boost from pension tax relief and employers’ contributions.”

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