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Gap between women’s and men’s pensions is ‘narrowing’

 

The gap between women’s and men’s retirement income is narrowing, a new study has found.

 

Yet experts say the change is due to a fall in men’s pension pots as opposed to an increase in women’s retirement income.

 

According to the Prudential, men and women can expect to retire on an average annual income of £15,500 in 2012. The figure, which takes into account private, company and state pensions, is the lowest recorded in five years.

 

The research claims women will retire on an average income of £12,250 this year, compared to the male average of £18,000.

 

It means the gender gap has now narrowed to £5,750 – down from £7,400 in 2010.

 

Meanwhile, it has been revealed that some two million British pensioners (21.4%) were classed as being at risk of poverty in 2010. That is significantly higher than the EU average of 15.9%.

 

Commenting on the findings, Michelle Mitchell, of Age UK said: ‘The Government must continue to work proactively on ways of getting money to older people in desperate need. Independent information and advice and face-to-face communication are key to improving the take-up of benefits.’

 

Ros Altmann, director of Saga, said: ‘We have had a system of state pensions that has been systematically cut over the years, trying to offload responsibility on to the private sector. It is another demonstration of why radical reform of our pension system is long overdue’.