Pension gap

• December 14, 2022
• Kayley Wilson
• no comments

Royal London research has highlighted the financial impact menopause is having on women and their pension pot.

The report ‘Bridging the Gender Pension Gap’ found that women are more likely to reduce their hours or leave work in their 50’s. We already know that nearly 1 million women have already left the workplace due to menopause symptoms, but in reality, this could be the tip of the iceberg!

The disparity is huge too – a woman who leaves the workplace at 50 in comparison to a woman who continues to work until she is 67, could see a shortfall of just over £126,000. And a woman who reduces her hours from the age of 50, the financial difference is roughly £63,000.

Clare Moffat, a pensions expert at Royal London said: “While the introduction of automatic enrolment ten years ago helped more women than ever save into a pension, the UK still faces a yawning gender pension gap.

“Women in their 50s, for a variety of reasons, are much more susceptible to leaving the workforce than men. Separate studies show that caring responsibilities mean women are twice as likely to be forced to leave their job than men. However, a notable barrier to remaining in work, which is only just beginning to receive increased awareness, is the menopause.

“While symptoms vary between individuals, for many women the menopause can have a big impact on their everyday life, often resulting in them reducing the hours they work or stopping work altogether. It’s only further down the line that the resulting missed pension contributions becomes apparent, but by then it may be too late.”

This is a further reason why Workplace Menopause Awareness training is vital to prevent the gaps becoming wider.

Let’s work together to raise menopause awareness so women can remain in employment for as long as they choose to, rather than feel there is no choice but to walk away.