Women are less likely to save into a pension

WOMEN are less likely to save into a pension than men, no matter what age they are, statistics reveal.

Around 2.4million women paid into a personal pension in 2013/14, compared with around four million men, figures from HM Revenue and Customs showed.

This means the number of women saving was 40 per cent lower than the number of men – and the gap grew as women aged. Among those aged 16-24, 22 per cent fewer women saved than men, increasing to 71 per cent fewer among over-65s.

Lower wages and taking time out to care for children or relatives are thought to be behind the difference. Around 1.9million men aged 25-44 saved, compared with 1.2million women of the same age.

Experts said women were still shaking off ‘a longstanding legacy of exclusion’ from pensions. In 2002/03, nearly double the number of men were saving compared with women – 5.2million compared with 2.7million.

Alan Higham, of PensionsChamp.com, said: ‘The gap is narrowing but the numbers are still belying the history that far fewer women used to save than men. Historically, pensions were linked to the male breadwinner. If young women didn’t see their mothers saving, they might also be inclined not to save.’

Jon Greer, of Old Mutual Wealth, added: ‘It is concerning that men still account for around two-thirds of pension savings. While this is a natural consequence of the earnings gap, it is important that families build a financial plan that ensures those saving less themselves are provided for should anything happen to the primary earner or saver.’

The figures follow controversy over changes to the state pension age for women, which will be 66 by 2020. It is currently around 63. The changes mean around two million women born in the 1950s have had to wait up to six years longer than they expected to claim their state pensions.

Thousands complained that they intended to rely on the state pension, due to not being able to save during their working lives.

An estimated £20.3billion was contributed to personal pensions in 2014/15, close to the £20.9billion pre-downturn peak in 2007/08.

One million more people were saving in 2013/14 than the previous year, thanks to the Government’s automatic enrolment of workers into pension schemes. But the average yearly contribution fell from £3,690 per person in 2011/12 to £2,840 in 2013/14.