According to a new report from digital wealth advisory firm Fintuity, men over the age of 75 receive £114 a week more than women of the same age. The findings, using data compiled by the Office for National Statistics, revealed that the gender pension gap between single men and women was only 8% in financial year 2014/15, having risen 18% in four years.
In 2018/19, the average incomes for retired males who were under 75 were £441 per week, and for men aged 75 or over, it was £429 per week. At the same time, these figures were significantly lower for the same age groups of women, whose average income per week reached £333 for those under 75, and £315 for 75 or over.
The figures revealed that a woman in her 20s would need to save approximately £1,300 extra per year to close the gender pensions gap. However, this average amount increases depending on age. For example, the average 30-year-old woman would require an additional £2,000; a 40-year-old woman would require an additional £2,900 and a 50-year-old woman would need to acquire a further £5,300 to close the gender pensions gap.
Gross income of single pensioners consists of different sources, such as benefit income, occupational pension income, personal pension income, investment income and earning income. According to the most recent pensions data, in the financial year, 2018/19 occupational pensions income for men was on average 35% higher than women, compared to 23% four years prior.
The personal pension income gap was 63% in financial year 2018/19, compared to 46% in FY 2014/15, and, the investment and earnings income gap between male and female pensioners increased from 5% and 8% in 2014/15 to a 61 and 74% respectively. This is suggesting that women are not as capable of making savings and investments due to low incomes, which results in lower pensions.
Ed Downpatrick, Strategy Director, Fintuity comments: “Despite government initiatives to improve the pensions income for women, it’s clear that no amount of support programmes can make up for the occupational gender disparity in the UK. This problem needs to be tackled head-on, with correct support initiatives put in place to enable women to get a much fairer deal.
“With Fintuity, women and men of all ages can receive professional, yet affordable, financial advice in order to see what options are available to them so that they can manage their pension income. All of this can be conducted online, via our digital platform, making professional financial help more accessible than ever.”