According to a report by Prudential there is a genderÂ based difference in pension income, with women receiving a whopping Â£6,500 a year less than men on average.
This means that, at £12,900 a year, women will only get just about two thirds of the amount (66.5%) that men get, which is £19,400. This is even wider when looking at South West England where the gap is Â£11,700. But the overall gap has improved from last year when the average was £7,400, with men on £19,600 and women on £12,200 (62.2% of the male amount).
Reported in the Express, the chief executive at the National Association of Pension Funds, John Segars, said "The big gap in retirement income between the genders is a serious issue, and the sums involved can make a huge difference to a pensioner's lifestyle. Sadly, many women lost out on the chance to build their pension when they left work to start a family, and too many are reliant on their husband's pension. It's important that everyone has a pension in their own right. Our society remains on a collision course with its retirement. Too many people are not saving, or are not saving enough. We have to get more people focused on putting something aside for their older age."
As Dr Ros Altmann, the pensions expert, said in the Express "Partly this is because women earn less than men through their working lives; women are more likely to have interrupted careers, work part-time, or have to stop work to care for older relatives".
But before we all descend on this piece of sexual inequality and condemn it, let's look at it from another angle shall we?
Mortality rates. Men die younger than women on average, so just get paid faster.
From an ONS 2005 study you can see that women across the developed world live longer than men. Here the UK came second in the mortality tables with a gap of 4.7 years and Sweden came out top with a lower gap of 4.4 years. In the Russian Federation men died at 58.8, a full 13.2 years before the women so based on UK pension ages men would never qualify for state pension in Russia.
So, after a retirement at 65 for both sexes in the UK based on the above mortality and annual pensions: men get paid a total of £207, 580 and women get £198,660. That's a disparity of just 4.8% overall. Now, as readily accepted by the experts such as Dr Altmann, women have not paid in anywhere as much as the men have, but now we see they get nearly the same out. The picture looks somewhat different now, doesn't it?
Now factor in the finance equality laws that are due to come into force next year, which the women are all upset about because they might have to pay more for car insurance. These laws will also not allow annuities to pay men faster as they die earlier. So it seems that men will gave to get used to paying more into a pension for the women who will live longer and women will have to subsidise the young testosterone fuelled male drivers' accident costs.