Women are now expected to retire with an average annual retirement income that is £6,400 less than their male counterparts, Prudential has found.

According to Prudential’s Class of 2017 research, the gap between women and men’s annual average expected retirement incomes in 2017 has grown by £1,000 in the last 12 months.

This year’s findings highlighted that women set to retire this year will be £6,400 worse off on average than men, and almost £200 a year worse off than women who retired in 2016.

Women retiring this year can expect an average yearly income of £14,300, the second highest on record, although down from £14,500 last year.

Nonetheless, this year’s female retirees are slightly more confident about their finances, with 50 per cent saying they are financially well-prepared for retirement, in comparison to 48 per cent in 2016.


In contrast, men’s expected retirement incomes have shown a fifth consecutive year of growth, with those retiring this year receiving an average annual income of £20,700, £900 more than those who retired in 2016.

The retirement income gender gap shows that men will be 45 per cent better off than women retiring this year. This is in comparison to the widest gender gap (recorded by Prudential) in 2008, where the average expected retirement income for men was 84 per cent higher than it was for women.

Prudential retirement income expert Kirsty Anderson, said: “It is encouraging that many women planning to retire this year feel financially well-prepared for their years in retirement. In fact, women’s expected retirement incomes this year are the second highest on record.

“However, the gender gap in retirement incomes continues to grow, probably reflecting the fact that many women will enter retirement having taken career breaks and changed their working patterns to look after dependants. Unfortunately, as a result, many women will end up with smaller personal pension pots and some are also likely to receive a reduced State Pension.

“For anyone who takes a career break, maintaining pension contributions and, where possible, making voluntary National Insurance contributions after returning to work, should help to minimise the impact on their retirement income. The best way to secure a good quality of life in retirement is to save as much as possible from as early as possible in your working life. Consulting a professional financial adviser to ensure that retirement financial plans are on track is a sensible route for many.”

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