There is a substantial gap between the anticipated incomes of men and women in retirement, according to the Class of 2011 study from Prudential. Men expect an average income of £19,400 per year when they retire, whilst women anticipate just £12,200.
The Prudential questioned people who were planning to retire in 2011 and discovered a retirement income gender gap of £6,500. However, the gap has closed slightly since last year. There are some regional disparities, with women in the South West expecting to retire with an income £11,700 less than their male counterparts, while in the South East, anticipated retirement incomes are about equal.
The study also discovered that 28% of the women intending to retire this year have no pension provision other than that provided by the state. Only 10% of men are in the same position.
Umbrella company contractors are being warned that the proposed flat-rate pension of around £140 per week will not be sufficient to live on.
Standard Life conducted a survey that found 37% of respondents thought they could survive adequately on £140 a week. However, John Lawson, Standard Life’s head of pensions, pointed out that the Joseph Rowntree Foundation had determined the minimum acceptable level of retirement income was £200 a week.
Currently, about 10% of British pensioners live in poverty and this is mainly because they do not claim the state benefits they are entitled to. It is still unclear which benefits will be scrapped under the new system but the government has said the poor will not be penalised.
Steve Webb, the pensions minister, says the proposed reforms will put an end to the inequalities in the present system. The next generation must take more responsibility for their retirement as life expectancy increases, final salary schemes decline and annuity rates decrease, he added.
© 2011 All rights reserved. Reproduction in whole or in part without permission is prohibited.
Image: Simple by cursedthing
