How many of the above can you identify with, or your colleague, friend or family member is going through?
I expect that every time you are going through one of these life-changing events, you do not firstly think, ‘What difference will that make to my pension?’ And even if you do, you may not know what to do about it or how to take action. But you must! If the gender pay gap isn’t bad enough, why should that translate into being poorer in retirement as a woman or having to work for longer?
State Pension amounts and age have now equalised, but this does not take account of the fact that women will statistically have less working time to build up pensions, as they are still the main carers for both children and elderly parents, more likely to work part-time for family needs, and still have average lower earnings.
Pension contributions are generally based on a percentage of salary which means that average lower earnings will have an effect on the level of contributions paid in.
How you can resolve this at a time when other lifestyle events are already putting a strain on your finances? Education and awareness is a good starting point. Speak to a Financial Adviser, look at your pension provider’s website and do target projections to see what income in retirement you are heading for, ask your HR team if their employee benefit advisers can help with information. Do not rely on a partner’s pension for your own income in retirement, there are many lifetime events which means this plan can be thrown off course. Can you contribute more to your pension plan? Can you join the scheme earlier than planned? Can you earmark other savings for retirement?
Being aware of the pensions gender pay gap issue is the first step! The next step is to take some action.
From an employer’s point of view, you also need to be aware of these issues. Assist your employees with targeted information and education for this group in order to help them make informed decisions. Click the button below to find out how we can help.