Female workers currently aged in their 20s will have a typical £250,000 in their pension pots by the time they retire. Their male colleagues will have closer to £350,000 saved. But women need even more money as they tend to live longer than men, according to the latest annual Scottish Widows Women and Retirement report. The £185,000 gap is made up of around £100,000 to narrow the divide, £50,000 to cover longer life expectancy and £35,000 to pay for additional care needs.
Jackie Leiper, of Scottish Widows, said: “There are ways to help level the playing field – from enhancing maternity pensions to offering better parental leave and financial support for childcare – so that women are no longer financially penalised for raising a family.
“Of course, we must also tackle the larger structural issues in our society, like the gender pay gap.”
Meanwhile, a study of the retirement ambitions of more than 1,000 people expecting to finish full-time work in 2021 found men expected their annual income to be £23,646. Women expected theirs to be just £18,991, equity release group Key found.