Retirement income gap increases

The gap in yearly retirement income for men and women has widened to £6,700 in 2014, according to research from Prudential.

The study reveals that the average annual retirement income for women in 2014 is £12,200. This is 35% lower than the average of £18,900 for men.

The survey shows that the gap has widened by £200 in the last year and by £950 since 2012.

Key findings:

  • 41% of women expecting to retire in 2014 feel well-prepared, compared to 54% of men
  • 29% of women think they have enough retirement income to live comfortably, compared to 47% of men 
  • The gender gap is widest in London where men earn £14,000 more on average than women
  • The gap was narrowest in the North West where men earn £1,500 more on average.

Vince Smith-Hughes, retirement income expert at Prudential, said:

"It is welcome news that average expected retirement incomes have increased for both men and women, but concerning that the gender gap remains stubbornly wide."

Michelle Cracknell, chief executive of The Pensions Advisory Service, said:

"Women generally have lower pensions than men and there are many obstacles that prevent women from building up enough pension savings, such as lower lifetime pay, and career breaks due to caring responsibilities and bringing up children."

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