Pensions - Articles - Equal pay today for equal pay in retirement

 “Today is equal pay day, the day on which women are effectively no longer paid until the end of the year.

 “The Fawcett Society’s finding is based on the fact that women in full-time jobs are still paid, on average, 13.9% less than their male colleagues. If a pot of money equal to the average annual salary of women was paid out at the same rate as the average paid to men, the income for women would run out before the end of the year. Today in fact.

 “Crucially, so long as women earn less, they will most likely continue to save less for their retirement, particularly as workplace pension contributions are usually based on a percentage of salary. This results in a “double whammy” of lower employer contributions and an increased financial pressure to make their own pension contributions.

 “The result is that we see women’s retirement income mirror their earned income with women finding that their pension pot also effectively runs out sooner than their male colleagues, so they are more likely to be dependent on just the state pension for the latter years of their lives. Royal London’s latest Pensions Through The Ages research reflects this, with nearly one in five women aged 35 to 44 saying that they believe that their financial situation in retirement will be unmanageable.2 Encouragingly, nearly half also said that they would seek advice in the future.3 Taking advice, and sooner rather than later, could make a real difference in retirement and encourage more women to make the most of their employers’ pension arrangements.”