Women and Pensions: What you should know

It is important for everyone to have a plan in place so that their standard of living doesn’t fall when they retire. While women generally live longer than men, they are less likely to have adequate income in retirement.

Women generally end up with smaller pensions than men.

One of the reasons for this is because women can face challenges during their working lives not necessarily experienced by men. Their career paths are more likely to alter course to allow for temporary or permanent leave to mind children, take care of loved ones or even take a career break. And while this pattern is changing with more men taking on the role of carer, many women still undertake this role.

In 2024 the Government is expected to attempt to bridge the State pension funding gap with the introduction of some measures including enhanced State Pension provision for long-term carers. Another initiative to increase the number of employees in Ireland with access to pension cover is Auto Enrolment, with funding by members, employers, and the state. However, will these measures be enough to adequately fund for your lifestyle in retirement?

Some things to consider…

§  Will your employer still contribute to your pension if you are on maternity leave?

§  If you take extended leave or reduce your working hours, will you have enough contributions to qualify for the full State Pension when you retire?

§  If you have a pension from a previous employer, do you know how much it is worth?

§  If you are married or have a civil partner, do you know how much income their pension will provide in retirement?

§  If you take extended leave or reduce your working hours there could be a knock-on effect of losing out on employer contributions towards your pension.

If you are currently in employment and do not have a pension plan, it is not too late to start one. Any gaps in employment due to extended leave or reduced working hours can be factored into your pension savings forecast.

If you already have a pension plan in place, it is a good idea to review it each year to ensure you are on track for your retirement pot.

If you are approaching retirement, find out how much income your pension is likely to provide you in retirement. If there is a shortfall you still have time to increase the amount you are saving into your pension.

Speaking with a Financial Adviser can help you review where you are today and work with you to develop a plan to meet your future needs and goals.