A new report from the Economic and Social Research Institute (ESRI) based on data from 2010 gathered for the Irish Longitudinal Study on Ageing, has found that men get €433 per week on average, with women receiving just €280 per week from their private pensions.
This means men are getting a third more than women in their pension pots – a gap of 35pc.
Over a year, retired women receive on average of almost €8,000 less than men.
The issues facing working women and pensions are not new. Not many women have any pension arrangement outside the State pension system and, even there, the rules plot to reduce the amount a woman is likely to receive. Data shows that when women are in work, they work less than full time and are more than likely to take career break to raise families.
Time is critical in building up pension pots. Looking at people who have already retired, the ESRI report notes that while 93 per cent of men spend more than 30 years in work, just one-third of working women do. That undermines the chances of women having pension income that matches that of men.
To make matters worse, many don’t start pensions in the first place – possibly daunted by the more fractured nature of their working lives. According to 2010 data cited by the ESRI, just 28 per cent of women open an occupational pension compared to 55 per cent of men.
The ESRI has said that the gender pension gap is down to a “complex mix of factors” but that policymakers should consider greater interventions to ensure the gap is reduced.
The ESRI’s research aligns with others studies which have shown that women are far less likely to be preparing for their retirement than men.
If you would like to find out more about setting up a pension, get in touch today. Our dedicated team will be delighted to hear from you. Your retirement might seem like a long way away but, financially speaking, the younger you are when you start, the better.
All the best,
The Team at Gallivan Financial