Women saving into a pension in line with the government’s auto-enrolment contributions could still end up with a pension pot that is more than 10 per cent smaller than men.
Fidelity research shows that, based on ONS projections and adjusting for inflation, the average pension pot for a man aged between 25 and 34 will be worth £142,836 at the state pension retirement age of 68.
Women of the same age will have a pension pot of £126,784, which is a gap of almost 11 per cent.
Fidelity says this gap is mostly due to women still earning less and taking time away from their careers to care for children or other family members.
Fidelity says women could close the gap by saving 1 per cent more of their salary into their pension early on in their career.
National IFA wants technology to solve ‘gender pensions gapInvesting is another way to close the gap but the Fidelity research finds the majority of women tend to be apathetic when it comes to engaging with pension funds already invested.
The research finds more than half (52 per cent) of women who hold a pension do not know where it is invested, while close to a third (37 per cent) don’t know how much their pension is worth.
Fidelity International investment director Maike Currie says: “On a professional level, the investment industry needs to do more to build trust and an understanding of their products and services among women. At a policy level, we need to look at the way pensions are designed and question whether they take account of the unique life choices and challenges women face.”