Women retiring at same age as men have 32% less in pension savings

A woman retiring at the age of 64 would have an average of £139,451, or 32 per cent, less in pension savings than a man retiring at the same age, according to PensionBee.

The provider’s analysis of Office for National Statistics data, which takes into account current pay gaps, found that men aged 64 typically accumulate £439,581 in pension savings, compared to £300,130 for women the same age.

Furthermore, if a heterosexual couple retire at the same time and the man is the older partner, the gap can be even greater.

If a couple with a two-year age gap (62 year old woman and 64 year old man) left the workforce at the same time, the woman could face £176,815 less in retirement.

Meanwhile, a couple with a five-year gap (59 year old woman and 64 year old man) retiring at the same time could see the woman £225,296 worse off, or 51 per cent.

“While coordinating retirement is a common goal for many, the persistent gender pension gap in the UK presents a significant barrier to achieving this, which is only exacerbated for couples of different ages,” said PensionBee CEO, Romi Savova.

“This huge disparity in pension pot sizes for savers within a five-year age range highlights the urgent need for policy interventions and bold action from employers so women can enjoy the same level of wealth in retirement as men.

“It also proves once again that timing is everything with pensions, and ultimately the time at which an individual or couple choose to leave the workforce, and start withdrawing their pension, has a significant impact on their overall retirement income.”

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