Study reveals women continue earning less after retirement
Scotland has the second biggest gender pay gap in the UK, a new study has revealed.
Scotland has the second biggest gender pay gap in the UK, a new study has revealed.
The figures also show after years of experiencing lower wages and the glass ceiling we’ve all heard about, it seems women can’t escape inequality once they leave their working days behind. The gap between what men and women retiring this year are expecting to earn in retirement has started to increase again – despite big falls in recent years.
Research from Prudential shows the gap between the sexes has grown by a whopping £600 since last year. Women expect to take home £14,450 annually – up £150 on last year – and a record high. However that’s not as good as it appears. Men expect to pocket £850 more than last year – taking their annual income to £19,850 – or 27% more than women.
The annual poll, which tracks the future financial plans and aspirations of people planning to retire in the coming year, is in its ninth year. Despite fluctuations, it has seen women steadily close the gap between what they and men are expecting to live off in their retirement.
The numbers also show a north-south divide, with those in the North East and Scotland having the biggest gender gaps in the country. The capital seems to be the most progressive, with a pay gap some £9,400 less than the North East.
UK REGIONS BY RETIREMENT INCOME GENDER GAP
1 North East - £10,500
6 North West – £5,500
2 Scotland - £9,250
7 South West - £3,400
3 South East - £7,600
8 East Midlands - £2,700
4 Yorkshire Humberside - £7,500
9 West Midlands – £1,500
5 East of England - £6,550
10 London - £1,100
This year’s figures represent a big turnaround on the gains made by female retirees last year. In 2015, the gap between the sexes fell by nearly £2,000. However, despite this year’s rising difference, the split between men and women is still some £4,000 less than in 2008. That year saw the average difference at its highest, at £9,500.
Despite that, those planning to retire in 2016 are no more optimistic about having a sufficient retirement income to enjoy a comfortable life than women who planned to retire last year – 40% in 2016 compared with 44% in 2015. In contrast, six in 10 (60%) men planning to retire in 2016 feel their expected income will be enough for them to enjoy a comfortable retirement.