Inequalities Still Exist In The Pension Space

Co-founder of financial wellness platform Maji.io Sahil Sethi believes there are still inequalities that need to be addressed when it comes to women and pensions, especially during a week where females right across the globe have been celebrated.

“The difference between men and women’s pensions is huge, with the average female pensioner being £7,000 a year poorer than her male equivalent,” comments Mr Sethi.

“Although there are various reasons for this, a key cause is that nearly half of mothers reduce their working hours when they have a child, with a third leaving work altogether.

“This has a significant impact on their ability to save for a pension at the same level as men; in this instance, women are likely to stop or significantly reduce their pension contributions, meaning they may miss out on employer contributions and lose the investment gains their contributions would earn.

“At Maji we believe one of the solutions to this problem is being part of a salary sacrifice scheme at work as during maternity leave, the employer is obligated to pay the employee’s pension contribution on their behalf.

“There are other benefits an employer can offer as well, such as basing contributions from the first pound being earned (instead of using qualifying earnings), and offering flexible working hours to enable women to stay in work.”