Prudential reveals retirement income gender gap is £6,500 a year

Prudential has announced that men retiring in 2011 expect to receive 50 per cent more pension income than women, according to new Prudential’s Class of 2011 research.

Prudential’s Class of 2011 research surveyed people planning to retire this year and found that the retirement income gender gap is £6,500. The average woman retiring this year expects an annual income of £12,900 compared with an average expected male income of £19,400.

There is some good news for women though as the retirement income gender gap has shrunk since last year when Prudential’s study showed a £7,400 gap with women expecting incomes of £12,200 while men looked forward to £19,600. However, women who planned to retire in 2009 expected an annual retirement income of £13,700.

The research found that people planning to retire in 2011 expect to have an average income of £16,600 – marginally higher than 2010’s figure of £16,500.

Vince Smith-Hughes, head of business development at Prudential, said: "It is good news that average retirement incomes for women have risen, but unfortunately the gender gap remains stubbornly wide.

"There are a number of actions that women can take to help to boost their retirement income. For example, it is a good idea to maintain pension contributions during any career breaks and to explore making voluntary National Insurance contributions after returning to work.

“It is imperative for anyone looking to secure sufficient retirement income to start saving as much as they can, as early as they can and to seek professional financial advice when they are planning to retire.”

The retirement income gender gap is at its widest in the South West of England where retired women expect £11,700 a year less than men. Meanwhile in the South East of England the expected retirement incomes for men and women are essentially equal.

The Prudential study also found that 28 per cent of women planning to retire this year have no savings in private or company individual pension schemes compared with just 10 per cent of men.

Notes to Editors:
Prudential’s Class of surveys were conducted by Research Plus using an online methodology: 2011 survey conducted 6-14 December 2010 among 10,143 UK non-retired adults aged 45+ including 1,005 planning to retire in 2011. The 2010 study was conducted 3-10 December 2009 among 6,073 UK non-retired adults aged 45+ including 1,001 planning to retire in 2010. Class of 2009 study conducted 10-18 November 2008 among 7,685 UK non-retired adults aged 45+ including 1,000 planning to retire in 2009.

About Prudential:
’Prudential’ is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group, which between them provide a range of financial products including annuities, life assurance, bond investment, a tax calculator and retirement plans, which include pension plan and pension annuity tips.

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