Women are less likely to have a private pension than men.
Women are present in all industry and business sectors today in Ireland. They are just as likely to be heading up a department as their male counterparts so why is it that when it comes to pensions they lag behind their colleagues?
It’s important for everyone to have a plan in place so that their standard of living doesn’t fall when they retire. While women generally live longer than men, they are less likely to have adequate income in retirement than men.
What can I do if I don’t have a pension plan yet?
You need to start one now! It is never too late to start a pension so you can help ensure that you have a comfortable retirement. If there are any gaps in your earnings as a result of taking extended leave or reduced working hours, you can factor this into your pension savings.
I already have a pension plan in place
That’s great but do you know how it is performing? Will it be adequate for you when the time comes to retire? You should review it to ensure you’re on track for the retirement you want. It’s important to ensure that it factors in the impact that any extended leave or reduced working hours could have on your pension savings, if this applies to you.
Time away from work
It’s a fact that women are more likely to take time away from work usually for family commitments. This can have a significant impact on pension savings and ultimately on the type of lifestyle you will be able to afford in retirement.
Will your employer still contribute to your pension if you are on maternity leave? There could be a knock on effect of losing out on employer contributions towards your pension if you take extended leave or reduce your working hours.
If your income is reduced, saving for your retirement may become less of a priority. If you take extended leave or reduce your working hours will you have enough contributions to qualify for the full State Pension (Contributory) when you retire?
Women generally save less into their pension plans than men
One of the reasons for this is because women often face challenges during their working lives not experienced by men. Their career paths are more likely to alter course to allow for temporary or permanent leave to mind children, take care of loved ones or even take a career break. And while this pattern is changing with more men taking on the role of carer, the vast majority of women still undertake this role.
So make sure that you have a retirement plan and that you don’t leave it too late to invest in your future. With the added benefit of tax incentives on contributions this could be the right time for you to start a pension.
For independent expert advice contact Ark Finance today to discuss your options. Your future self will thank you for it.