An insightful report9 makes it clear just how large the gender pension gap has become. A typical woman in her twenties, it reveals, would have to work an average of 40 years longer than a man to build up the same pension at retirement, with women currently averaging a £100k savings deficit compared to men when they retire.

Mind the gap

The study identifies several reasons for this sizeable difference between men and women’s pension funds. Not only do men tend to earn more than women, but they are also more engaged with saving for retirement. Meanwhile, women spend seven extra years on average in part-time work, further diminishing their saving ability.

More needs to be done

The report called for several actions to improve the situation, including raising the default employee pension contribution, extending auto- enrolment to the self-employed and lowering the minimum age for the scheme from 22 to 18. Currently, employed under-22s aren’t enrolled automatically but may opt in and benefit from employer contributions if they earn at least £6,240 a year. 9Scottish Widows, 2020

It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.

Equity release will reduce the value of your estate and can affect your eligibility for means tested benefits.

Tax and Estate planning are not regulated by the Financial Conduct Authority

The value of pensions and investments can fall as well as rise. You may get back less than you invested.

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CA Financial Services offer financial advice, pensions, investments, ISAs, Equity Release and Inheritance Tax Planning for the whole family. We have 14 years’ experience as Financial Advisers based from Sevenoaks and are truly independent, allowing us to give our customers the best financial advice possible.

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