Pensions gender gap 'narrowing'
Published on 08 June 2012 12:30 AM
The difference in male and female retirement income is getting smaller largely due to a decrease in male income, according to a report.
The average combined state, private and company amount that both men and women expect to live on during their retirement is at its lowest in five years, at £15,500, compared to £16,600 in 2011 according to Prudential.
The study found that females who retire in 2012 predict a yearly sum of £12,250, which is roughly £5,750 less than males who currently expect £18,000-a-year when they retire.
The difference in expected income between men and woman was £7,400 in 2010 and has been getting smaller ever since, which is largely because of decreasing income for men according to the study.
In 2010 males expected to earn £19,600 a year during their retirement but women expected £12,200.
Indeed, 49% of females and 40% of males do not think they will earn enough money for a comfortable retirement.
Annuity rates have been badly affected by low interest rates and quantitative easing (QE), leading to more than a million retired people purchasing an annuity that will give them less income.
Copyright Press Association 2012