Business Pensions

Wednesday 1 October 2014

Women have 33pc less saved for retirement than men

Published 28/06/2014 | 02:30

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Women have 33pc less saved for retirement than men. Photo: Getty Images.
Women have 33pc less saved for retirement than men. Photo: Getty Images.

WOMEN have a third less saved for their retirement than men.

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New research from Irish Life found that this is mainly down to the fact that female workers earn less than their male counterparts. Because women often leave the workforce for a time to look after children also impacting on the pension pots that they accumulate.

Both sexes are set to retire on small pensions as they and their employers are not putting enough into retirement funds, but women have even less put aside for retirement. Based on the contributions being made by workers and their employers, the average worker is set to end their working life on a pension of just under €8,000 a year.

But the average woman will end up with just €6,700 a year.

The calculations assume the average worker – both male and female – is earning €46,000 a year and is 37-years-old, with a defined contribution scheme.

Irish Life looked at 1,400 defined contribution schemes.

The study shows the average fund accumulated to date is just over €53,000 for men and just over €34,000 for women.

Managing director of Irish Life Corporate Business David Harney said employers should examine ways of encouraging greater engagement from their employees in their defined contribution schemes.

Irish Independent

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