May 29th, 2019
Women encouraged to get ‘ahead of the curve’ on pension saving
Following the issue earlier this month of the Personal Income Statistics by HM Revenue & Customs (HMRC), Royal London are encouraging women to “get ahead of the curve” when planning for their retirement and saving into pensions, with figures showing that women hit their peak median income in the 35 to 39 age bracket. The figures show that the average income for women at their peak was £24,300 compared to men’s at £32,300 per annum, which is achieved in the 45 to 49 age range.
Royal London’s pensions specialist, Helen Morrissey, highlighted that the “statistics show that women hit their peak median income in the 35-39 age range, so it is vital they get ahead of the curve and start saving into a pension as early as possible. There are many reasons why women hit this point earlier than men, for instance the rise in part-time working among women after this point as they take on caring responsibilities. By starting saving into a pension early we can ensure women take full advantage of the employer contributions, tax relief and investment performance which will help them build a sustainable base for their future retirement planning.”
This research indicates a significant difference in salary levels between men and women and further highlights the need for women, in particular, to start saving into a pension as soon as possible in their adult lives, to be able to live comfortably and achieve the lifestyle they hope for in retirement.
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Written by Kay Crooke – Associate Practice Director at Prosser Knowles Associates Limited.