Teachers have the BIGGEST gender pension gap out of any industry
New study uncovers the truth behind the gender pension pay gap as it’s revealed that teachers are facing the biggest pension pay gap
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 a whopping 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.
This is why Raisin UK 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.
Secondary school teachers have the largest loss in pensions
Raisin UK is raising awareness of the gender pension gap in the UK, as findings show that the average annual gender pension gap for women in full-time general secondary education has reached -£1,034 for teachers outside of London.
The findings show that teachers are actually facing the biggest pension gap in the UK at -£1,019 a year, followed by lecturers at university institutions coming in close second both inside and outside of the capital, at a £943 loss per year.
Not only is the gender pension pay gap the largest in secondary education, but the average salary gap for a woman in general secondary education is £14,021.
How to close the gap in your own pension pot
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, choose to pay more before you expect to have children. This means you don’t have to worry as much when having to plug the gap whilst 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 also 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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