According to recent statistics released by mutual insurer Royal London, the gender gap on retirement incomes in the UK has increased significantly over the course of the last 10 years, and now on average a single women will receive £85.00 a week less than a man.
Pensions Gender Pay Gap – The Stats
The findings show that in 2006/07, that an average retired single woman had a pension income of £294.00 a week, whilst her male counterpart received £325.00 a week, which equates to a gap of £31.00.
However, by 2016/17, this amount had almost trebled with the average retired man having a gross income of £401.00 and the average woman receiving £316.00 a week, meaning that there is a gap of £85.00 a week.
Men’s incomes had risen by 23% in real terms over the course of the last 10 years, compared with a 7% increase for women. According to Steve Webb, Director of Policy at Royal London, the increased gap has mainly taken place over the course of the last two years. The primary reason for the gap increasing is due to the fact that the real earnings of a man (over pension age) have more than doubled (£17 per week in 2006/07 to £37 in 2016/17) during the last decade, whilst the real earnings of women have slightly reduced (£21 per week in 2006/07 to £19 in 2016/17).
In addition, there has been a much steeper increase for men in their occupational pension incomes over the last 10 years. On average, a man’s average workplace pension income has risen from £83.00 per week to £125.00, and a woman’s workplace pensions has increased from £58.00 per week to £81.00.
How Can Nelsons Help?
John Stanley
is a Partner & Independent Financial Adviser in our Wealth Management team.
The team are able to review pension arrangements, and provide cash flow models which project forward potential income streams to calculate affordability and sustainability in retirement.
Call 0800 024 1976 or contact us via our online form if you would like any advice in relation to your pension.