Adult men have a median pension wealth of £75,700, nearly twice as much as women do at £42,500, according to research by financial services consultancy Broadstone.
Its Wealth and assets survey found that of all adults aged over 16 years, men have a median of £75,700 in private pension savings in pots they are actively contributing to, preserving for retirement, or receiving in payment. This is nearly twice as much as women’s median private pension savings.
The gap among those moving towards the end of their career widens. Men and women aged 75 and over have median private pension savings of £84,000 and £42,800 respectively, while among those aged 45-54, men have a median private pension wealth of £108,100, which is over £50,000 more than women, whose median savings stand at £57,900.
Of employees aged 55-64 and 65-74 years, men have a median private pension wealth of £193,900 and £191,600 respectively, which is higher than women’s private pension savings of £105,200 and £106,300 in the same age groups.
The survey highlights the need for more targeted support towards women to help encourage higher levels of pension saving and lower hurdles in progressing earnings.
Rachel Coles, workplace engagement consultant at Broadstone, said: “Private pension savings are vital to achieving a decent standard of living in retirement by providing supplementary income to state-provided sources via benefits or the state pension. While the problem of pension adequacy is well known and understood, data like this is important in helping to uncover specific segments of society that are likely to be worst off.
“Financial education will be a major part of building up awareness of the importance of later-life savings, the tax efficient benefits of pensions and how factors like starting to save as early as possible can help maximise savings by the point of retirement. In couples where there is an unequal distribution of wealth, the data also demonstrates the need for careful estate planning to ensure wealth can pass from husband to wife in the event of a death.”