The PensionBee research showed that in some parts of the country, the UK gender pension gap is as high as 57 percent – depending on savers’ age and regional location.
The issue has been exacerbated for women the most in Northern Ireland, at 57 percent, where average savings for men total £17,883, versus for women at £7,737.
A similar problem is faced for women in the North East and South West, with identical gaps of 46 percent – slightly higher than the national average of 38 percent.
The impacts of this are stark, meaning some women will be forced to turn to other streams of income such as the state pension to make up for the shortfall.
But with the state pension age also rising, women may have to work longer than they originally hoped for or anticipated.
“Everyone deserves to look forward to a happy retirement, regardless of their gender, and more must be done to prevent the gap from developing at the start of a woman’s working life, as we know that it only widens with age.
“Where a pay gap exists for women, a pension gap will follow. Therefore tackling wage inequality is of paramount importance.”
PensionBee also looked at the expected retirement pot of each age group based on particular assumptions.
On average, those aged 50 and over currently are set to retire on £87,500 – the smallest personal pensions.
As a result, Ms Savova urged female savers to keep paying into their pension, even when circumstances change – such as reducing hours or going off on maternity leave.
She added: “Women are more likely than men to take time off work to look after children, and many women stop contributing to their pension while on maternity leave.
“The combination of lower salaries and long career gaps, with little or no pension saving for years, are a massive disadvantage for women.
“The benefits of compound interest and tax top ups from HMRC make a pension an attractive long-term investment.
“The more women can contribute to their pension now, the more they will be able to improve their quality of life in retirement.”
This post originally appeared on Daily Express :: Finance Feed