The 37-year pension gender gap: Young women will need to work DECADES longer than men to reach pensions equality, report claims
- Woman has to work 37 years longer than man same age to reach pension parity
- Due to lower average earnings, part-time work and taking time out for family
- Female savers can expect to have £100,000 less on average in retirement pots
Young women will typically need to work nearly 40 years longer than men to reach pensions equality with them.
A woman in her 20s will have to work 37 years longer than a man of the same age to reach retirement parity, according to insurance firm Scottish Widows’ most recent women and retirement report.
This is due to lower average earnings, part-time work and taking time out of paid employment to care for family.
The figures are taken from the most recent Scottish Widows women and retirement report
Jackie Leiper of Scottish Widows said: ‘Young women have been some of the hardest hit by the short-term financial impact of the pandemic and this has only exacerbated the challenge of reaching pensions parity.’
Younger female savers can expect to have £100,000 less on average in their retirement pots than their male counterparts, Scottish Widows said.
It said that as International Women’s Day today highlights the progress made in gender equality, there is still some way to go before the pensions gap closes.
To reach retirement parity, a woman currently in her 20s will have to work 37 years longer than a man of the same age to accumulate the same income, it said.
The figures are taken from the most recent Scottish Widows women and retirement report.