UK women receive less than half of the investment income men receive in retirement, according to a new study.
Figures from Salisbury House Wealth show on average women receive £12 a week in investment income compared with £28 for men.
The data from 2017/18 (the latest available) represents a 57 per cent disparity, significantly more than the 9 per cent gender pay gap reported by UK employers.
In addition, the gender pay gap for income received from personal pensions is also significant with men receiving nearly four times the amount of income that women do (£19 and £5 a week respectively).
Only last week the Pensions Regulator announced that auto-enrolment was narrowing the gender savings gap with more women and younger people saving for pensions
However, the data from Salisbury House Wealth paints a starker picture and the TUC estimates it may take nearly 60 years to fully close the gender gap.
Salisbury House Wealth managing director Tim Holmes says: “Here is yet another example of how entrenched the gender income gap is in retirement – this needs to change.”
While the firm’s data also showed that the amount of weekly income received in retirement has increased to its highest level in a decade (up to £88 from £43), Holmes argues there is more to be done from an advice perspective.
He adds: “Unfortunately, some advisers have a tendency to assume women are more risk adverse and advise lower-risk lower-return investments as a result. An overweighting of these assets could result in an investment portfolio not generating enough income when needed at retirement.”
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