While the gender pay gap is now widely discussed and publicised, the gender pension gap is less prominent, but by the age of 50 women have saved an average of just £56,000 into their pension pots vs £112,000 for men5.
THE GAP STARTS AT BIRTH
HMRC data shows that the gender pension gap begins at infancy. According to recent statistics, parents or grandparents paid money into a pension for 13,000 girls in the 2016-17 tax year, compared with 20,000 boys6.
WHAT YOU CAN DO
Starting to save for your son or daughter, grandson or granddaughter as soon as possible, is a great discipline. An early start to saving can make a huge difference to the size of the pension pot down the line. If you’d like to find out how much you can pay into a pension on behalf of a child, or explore which plan might best suit their needs, we can help.
A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation. The value of investments and income from them may go down. You may not get back the original amount invested.