The simultaneous pressures of longer life expectancies, squeezed budgets, overly generous, short-sighted pension agreements of yesteryear, and the financial crash of 2008 have squeezed pensions for everyone.
When Osborne used his Autumn Statement to announce raising the state pension age to 70, the message was clear: from here on out, everyone will be working longer, for less.
But none more so than women.
As it stands, all private pension schemes are based on income to some degree. Increasingly rare defined benefit schemes are calculated as a proportion of your income – either immediately preceding retirement, or as an average. Defined contribution schemes are dependent on how much you can spare. And employer contributions are usually specified as percentages of your salary.
On average, women earn less than men. And this gap is growing. According to the ONS, average earnings in full-tine employment currently stand at £556 per week for men, and £459 for women; a pay gap of 10%, up from 9.5% in 2012. Continue reading