The retirement experts told This is Money that its calculations are based on ONS data and its own modelling system. They took into account median gross weekly earnings and median hourly pay to work out median annual hours of paid work and annual pay by gender.
It said: “We assumed annual pension contributions of eight percent, growth of seven percent, and fees of 0.5 percent, for consumers saving from age 25 to 64 and taking no withdrawals between those ages.”
Romi Savova, chief executive of PensionBee, added: “This huge disparity in pension pot sizes for savers within a five year age range highlights the urgent need for policy interventions and bold action from employers so women can enjoy the same level of wealth in retirement as men.”
It should be noted that the figures will not apply to every couple as there are always different variables when it comes to pension pots. However there are a number of practical steps that can be taken to help combat this pension gap.
A DWP spokesperson said: “Automatic enrolment has helped millions more women save into a pension, with participation among eligible women in the private sector rising from 40 percent in 2012 to 86 percent in 2020 – equal to that of men.
“Our plans to remove the Lower Earnings Limit for contributions and to reduce the eligible age of being automatically enrolled to 18 in the mid-2020s will enable even more women to save more and start saving earlier.”
These tips, derived from findings by PensionBee and LEBC’s ‘Gender Pension Gap: A Practical Guide’, could help people on their way to secure a more comfortable retirement financially.