On average, women in their twenties today are on course to retire with £100,000* less in their pension pot than a man the same age. To make up the difference they'd have to start work much younger. Of course we don’t think girls should actually have to start work from a young age to close the pension gap so let’s take a look at what can actually be done.
* Scottish Widows Women & Retirement Report 2020
This #IWD2021 we're raising awareness of the gender pension gap to empower a generation of young women with the information they need to close the gap.
There are many reasons that the average 20 year old women is on course to have £100,000 less in her pension than a man the same age. The amount people save into their pension is generally a percentage of their salary or income. So anything that reduces your income will directly affect your pension. Women are more likely to face life events which negatively affect how they save for their retirement. They’re more likely to take time out to raise a family, manage caring responsibilities, be in lower paid roles or work part time (75% of part time workers are women*). The gender pay gap also plays its part so it’s really important to raise awareness around how these challenges can impact retirement planning, but we’re here to help and there are things you can do to help reduce the gender pension gap.
* Scottish Widows Women & Retirement Report 2020.Download our Q&A to find out more
Did you know by saving into your pension while you're young can really help you manage some of the pension savings challenges typically faced by women, like career breaks, pay gaps and part time working? Our top 3 tips can make it all a bit easier to get to grips with.
It’s hard to prioritise saving for your future over the day to day but if you can afford to save even a small amount more your future self will thank you for it. See how saving an extra £25 a month can help close the gap between a man and a woman’s pension pot.
When you save into your workplace pension your employer will too! Pensions are a really great tax efficient way to save so it soon adds up. See how you can make the most of your workplace pension.
Chatting about a pension may not be top of your list, but talking with friends, family or your employer can be really great way to get to grips with it all. Download our guide to help you get started or join the conversation on our social channels #GenderPensionGap.
The more you know the easier it is to take the steps to help close the pension gap. Visit our dedicated “Your Future” hub which is packed with some really useful information and helpful hints & tips and see what Scottish Widows are doing to help close the Gender Pension Gap.Visit our hub
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