The pension deficit or gap is the difference between the retirement income you have and what you need to maintain your standard of living in retirement.
In recent years, there has been growing concern about the pension deficit faced by women. Despite progress in gender equality, women are still facing significant challenges when it comes to retirement savings and are more likely to retire with less money than men. This can have a major impact on their quality of life in retirement.
There are several reasons why women face a pension deficit.
Another factor contributing to the pension deficit is the gender investment gap. Women tend to be more risk-averse when it comes to investing, which can lead to lower returns on their investments. This can mean that their pension pots grow more slowly than those of men, even if they are contributing the same amount.
There are also systemic issues that contribute to the pension deficit. For example, the state pension age for women has been increasing, which means that women are having to work longer before they can claim their state pension. This can be particularly challenging for women who are caring for relatives or who have health issues that make it difficult to continue working.
Addressing the deficit
The gender pension gap is a complex problem, where there is no single solution and government measures may be needed.
What can women do?
There are several things that you can do to help close the gender pension gap. Here are a few tips:
By taking these steps, you can help to close the gender pension gap and ensure that you have a comfortable retirement.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
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