Construction workers have one of the biggest gender pension gaps

Construction workers have one of the biggest gender pension gaps

With TikTok searches for content around pensions increasing by 83% in the past 12 months and Google searches for ‘how much is a women’s state pension’ increasing by 238% in the same period, women are becoming more aware that their pension could be significantly impacted by not only their gender but also the choices they may choose in their lifetime, says Raisin UK.

The company has compiled a report looking into the Gender Pension Gap to find out exactly what the implications are on women’s pensions in the UK. 

Raisin UK is raising awareness of the gender pension gap in the UK, as its findings show that the average annual gender pension gap has reached a loss of £763 per year for women who work as construction contractors compared to their male counterparts. This equates to a total loss of £34,335 across a 45-year working lifetime. 

This is the fourth greatest pension loss out of all UK industries, falling only behind women working in education and sales.

Savings expert and co-founder of Raisin UK, Kevin Mountford, explains what parents can do to prevent losing out as a result of having children when it comes to retirement:

“Ultimately, there are a lot of systemic changes that need to take place to help close the gender pension gap for good. However, there are some steps women can take before having a child that can help ensure they don’t end up worse off when it’s time to retire.”

Pay a larger contribution early on

Typically, by law, the average employee pension contribution in the UK is at least 5%, however, it’s important to note that this may not be affordable for all. Where people are able to do so, they can choose to pay more before they expect to have children. This means you don’t have to worry as much when having to plug the gap while having dependents.

Start saving early with workplace pensions 

Take advantage of workplace pension schemes such as the UK’s auto-enrolment scheme. Starting these schemes early ensures you benefit from both employer contributions and tax relief, and will help you to build up a larger nest egg without seeing too much of an impact on your take home pay in later years.

Contribute to Personal Pension Plans (SIPPs)

Consider setting up a Self-Invested Personal Pension (SIPP) alongside your workplace pension for additional retirement savings. SIPPs offer flexibility and control over your investment choices, acting as an additional layer that allows you to save, invest and build up a larger pot of money for when you retire.

Stay informed about UK pension laws

Keep yourself updated on UK pension laws and regulations, including changes to the state pension age and contribution requirements. Staying informed empowers you to assert your rights and plan for retirement effectively, ensuring women have equal access to retirement benefits and opportunities.

Invest in ISAs

Save into Individual Savings Accounts (ISAs) as part of your retirement planning strategy. ISAs provide tax-efficient savings options, including cash ISAs and stocks and shares ISAs, so that you can put extra money away to save for retirement. Lifetime ISAs, if not used for buying your first property, can be withdrawn at the age of 60 to help you through retirement

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