Young women ‘must work 40 years longer than men’ to plug £100k pension gap

Link: https://www.theguardian.com/money/2021/mar/08/young-women-must-work-40-years-longer-than-men-to-plug-100k-pension-gap

Excerpt:

Young women would have to work nearly 40 years longer than men to build up the same retirement pot, according to a report highlighting the pensions gender gap.

The average woman in her 20s can expect to have £100,000 less in her pension pot than a man of the same age as a result of earning less, working part-time, and taking time out of paid employment to care for family members.

The calculations, made by pensions company Scottish Widows to coincide with International Women’s Day, showed that a female saver would typically save £2,200 annually for the first 15 years of her career, compared with £3,300 for a young man. The average woman in her 20s today would have to work 37 years longer than a man of the same age to reach retirement parity.

Author(s): Shane Hickey

Publication Date: 8 March 2021

Publication Site: The Guardian UK