Women £4,900 worse off in retirement than men - Prudential Average female retirement income is £16,900
Women retiring this year will have average expected retirement incomes £4,900 lower than men, research by Prudential has found.
Women are still set to be 29% worse off than men, despite their expected retirement income hitting a record high, Prudential's Class of 2018 study has shown.
The study found men can expect to retire on an average annual income of £21,800 compared with women's of £16,900.
The Joseph Rowntree Foundation's (JRF) Minimum Income Standard states the income for a single pensioner should be at least £9,998. However, findings show that one in six (16%) women will be retiring with an income below this standard, compared with 10% of men.
The retirement income gender gap is narrowing and is now the second lowest on record with the smallest gap recorded in 2015 at a £4,800 disparity.
This is a significant improvement when compared with the widest gender gap recorded in 2008 when the average expected retirement income for men was 84% - or £9,500 higher - than that expected by women.
Furthermore, both men and women are now retiring on a higher average annual income in 2018 than any other time over the last 11 years. Women retiring this year will be £2,600 a year better off than last year, while men will be £1,150 better off, according to Prudential.
Gap Shrinking Over Time
Prudential retirement income expert Kirsty Anderson said: "The retirement income gender gap is still too wide, at nearly £5,000, with women struggling to match the incomes generated by men.
"However, it is really encouraging to see that the retirement income gender pay gap is shrinking over consecutive years and women are starting to close the gap on men. It is also extremely positive news that expected retirement incomes this year are the highest on record."
Meanwhile, Moneyhub CEO Samantha Seaton added: "Too many people are still not saving enough for their future, with women at particular risk of facing retirement without enough to live on.
"While auto-enrolment has made an impact, there is a real risk that if we fail to engage consumers with the need to save, when contributions increase next year, many will opt out. The onus is on providers, employers and government to do more to help people understand their money."