Gap Closing Between Men and Women’s Pension Income No Cause for Celebration
08 June 2012 (PLANSPONSOREurope.com) - The gap between men and women’s pension income in the UK falling should not be celebrated, according to Malcolm McLean, consultant, Barnett Waddingham.
Research from Prudential reveals the gap between men’s and women’s pensions has narrowed in the past few years, down to £5,750 compared to £7,400 the previous year.
But according to McLean this is a bad news story not a good one.
“The gap is closing because men’s income is falling not because women’s is rising. In fact as the report acknowledges the average pension across both genders has fallen to £15,500 now compared to £16,600 in 2011.
“And as we know from other surveys less than half the working age population of the UK is now contributing to any sort of private pension arrangement. All of this re-emphasises the need to re-invigorate the savings culture and restore public confidence in the system.
“For the immediate future a lot hangs on the success or otherwise of the government’s plans for auto-enrolment and the new higher flat rate state pension. If these fail to stem the tide then more radical options will inevitably have to be considered.”