More than a third of female professionals will retire below the poverty line, a new study has indicated. Prudential's Class of 2010 retirement survey indicates that 35 per cent of women planning to retire this year will receive an income of under £14,000. This compares to 29 per cent of men who will be in a similar financial predicament.
According to Prudential, the gender gap becomes even starker over the age of 65, where 42 per cent of women will have incomes below the poverty line compared with 33 per cent of men.
Vince Smith-Hughes, the company's head of business development for pensions, said the findings highlighted the need for businesswomen to take retirement planning into their own hands. "Women are more likely to take a career break when they start a family and possibly the last thing on your mind when you're taking care of children and the home is how you're going to fund your retirement years," he stated. "Evidently there is a vast difference between men's and women’s anticipated retirement income and we believe government and the retirement savings industry can do more to encourage men and women to save more into pensions."
The government announced this week that the default retirement age of 65 is to be scrapped.
APA
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