Women retiring this year will earn £12,900 per annum on an average compared to £19,400 that men will be earning, a recent study by Prudential found.
Although the difference in retirement income is about 50 percent, it is still an improvement over last year when the gap was £7,400. Last year men on average were expecting £19,600 while women looked forward to £12,200.
In 2009, women were better off and expected to take home £13,700. The study also found that average retirement income will almost remain flat in 2011 at £16,600 compared to £16,500 in 2010.
Although average income of women rose in 2011 compared to 2010, the gender retirement income inequality has remained wide, said head of business development at Prudential Vince Smith-Hughes.
To bridge the gap in retirement income, he has a few tips for women. “There are a number of actions that women can take to help to boost their retirement income”, he said adding: “For example, it is a good idea to maintain pension contributions during any career breaks and to explore making voluntary National Insurance contributions after returning to work”.
Strongly favouring financial advice for retirement planning, he said: “It is imperative for anyone looking to secure sufficient retirement income to start saving as much as they can as early as they can and to seek professional financial advice in the run up to retirement”.
John Bloomfield, an adviser at Paul Wilson Financial Services seconded Mr. Hughes’ view. “Most of my female clients have had intermittent working patterns and don’t have much if any retirement income”, he said.
“Hopefully the National Employment Saving Trust (Nest) system in the future should help but for people in that situation now there is not a lot that can be done”, he concluded.