Retirement Planning – The Gender Gap

Did you know …?

That men are twice as likely to earn over £50,000 a year than women? ……… Or that mothers who had their first child below age 33 earn 15% less than those who hadn’t had children by age 42?

In March 2016 the Institute of Public Policy Research (IPPR) presented its key findings to the Trade Union Centre (TUC), which proves that a ‘Motherhood Pay Penalty’ really does exist. By contrast, mothers who had their first baby over the age 33 experience a ‘pay bonus’ compared to similar women who haven’t had children.

So why is this? It’s true to say that the world has definitely improved for the modern day woman living within the UK, but there is still some way to go in closing what is deemed to be ‘the gender pay gap’.

genfer gap

It should, therefore, come as no surprise when a recent study conducted by Scottish Widows found that men are more likely to make provision for retirement than women; with a male saving on average £177 per month and a female saving on average £105 per month. At the present time, it is known that only 52% of women are making adequate savings into pensions as compared to 60% of men.

The study also found that women do indeed prioritise short term savings over longer term savings; taking responsibility for childcare, caring for elderly parents, or making adequate provision for maternity leave.

Unsurprisingly,18% of women work part time as opposed to 6% of men, and therefore, attitudes toward retirement planning appear to be far less important to women than men, as the families immediate needs are prioritised by the mother.

Irrespective or your age – and whether male or female – here at Logic Wealth Planning we believe it’s never too early to start planning for your retirement. Our advice will take into account (for example) your current circumstances and your hopes and plans for the future. So why not take that first step now and make an appointment to come and talk to us.

 

Vouchedfor May 2016