As life expectancy increases and the future of public services, such as state pensions, becomes uncertain, there is a growing reliance on personal and employer-provided pensions. In Ireland, women tend to live about four years longer than men, according to the CSO. However, despite their longevity, women typically receive significantly smaller pensions compared to their male counterparts, contributing to a considerable Gender Pension Gap in Ireland.
According to the recent data from Independent Trustee Company (ITC) survey, more than 90% of financial advisers said that men contributed more than women into their pension funds. Almost 70% of these advisors recognised that men save “much more” than their female counterparts do. Furthermore, according to Irish Life, men typically draw down an average of €125,000 from their savings within a year, whereas women draw down about €69,000 over the same period. The reasons for this are:
To effectively address these pressing issues and improve women’s financial security, the following measures are proposed:
The Minister for Social Protection Heather Humphreys has noted that the soon-to-be-launched auto-enrolment pension scheme is vital even as it may experience some delays this year. Through this system, 750,000 employees without occupational pensions will be automatically included by a combination of employee, employer and state contributions. According to survey conducted by Retirement Planning Council in Ireland, 63% of respondents believe this system would help narrow the gap on gender pensions.
Women must take affirmative steps forward with regard to managing their own finances. This includes:
Make use of pension schemes operated by the employers or Personal Retirement Savings Accounts (PRSAs). There are other ways too such as Additional Voluntary Contributions (AVCs) and review of dormant retirement accounts that one can save more through.
Financial consultants can give advice that is tailored to individual needs while also assisting in drawing cutting edge financial plans for better money management, and preparation for old age.
It is important to address some of these systemic issues that disadvantage women when it comes to saving for retirement which includes affordable childcare and recognition of unpaid caregiving roles.
Fairstone’s retirement experts are dedicated to guiding you through this journey with personalised, strategic advice tailored to your unique financial needs. We provide you with expert advice to enhance your financial security. By choosing Fairstone, you gain access to expert advice that not only addresses immediate financial concerns but also prepares you for a more secure and prosperous retirement. Our holistic approach ensures that you can confidently navigate the complexities of retirement planning, ultimately achieving greater control over your economic future.
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