Most women have seen their pension contributions cut year on year, while men have increased their contributions, according to the first issue of the Friends Life Workplace Savings Index.

Released today, the index showed that the rolling 12 month average pension contribution for women under 30 decreased by £2 to £218 a month, while those aged between 30-45 saw a £1 decrease to £213 and women over 60 also experienced a £2 decrease to £193 a month. Women between 45-60 saw an increase, albeit a lower increase than for men of the same age.

Friends Life said that the decrease in contributions for women combined with rising inflation results in an approximate decrease of five per cent in real terms. On average, women’s contributions are 38% lower than men’s at £200 a month compared to £324.
Men increased their contributions by £14 to £324 a month on average over the last 12 months, with men aged 45 to 60 making the largest average increase of £19 to £383.

Combined, the rolling 12 month average pension contributions for men and women rose by £9 over the last year, bringing the average contribution to £276 a month. Friends Life pointed out that this is in line with inflation, but will not be sufficient when faced with the current lack of pension savings and an ageing population.

Martin Palmer, head of corporate benefits marketing at Friends Life, said: “It looks like good news that on the whole individuals have weathered the economic storm to date and have maintained pension contributions, but when you look at the impact on contributions by age and gender a more concerning picture emerges, where the average contributions made by women have decreased in value.

"This is particularly concerning given that average contributions are already too low. When you consider wider pension reforms and the increase in state pension age women seemingly have a tougher challenge ahead than their male counterparts. It is vitally important that all customers, and especially women, focus on the long term to make adequate preparations for their retirement.”

The Friends Life Workplace Savings Index is a new quarterly report powered by DCisions, providing insight into long-term saving based on data from workplace pension schemes run by Friends Life.

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