Prudential Reveals Retirement Income Gender Gap is £6,500 a Year

LONDON, June 28, 2011 -

Prudential has announced that men retiring in 2011 expect to
receive 50 per cent more pension income than women, according to
new Prudential’s Class of 2011 research.

Prudential’s Class of 2011 research surveyed people planning to
retire this year and found that the retirement income gender gap is
£6,500. The average woman retiring this year expects an annual
income of £12,900 compared with an average expected male income of
£19,400.

There is some good news for women though as the retirement
income gender gap has shrunk since last year when Prudential’s
study showed a £7,400 gap with women expecting incomes of £12,200
while men looked forward to £19,600. However, women who planned to
retire in 2009 expected an annual retirement income of £13,700.

The research found that people planning to retire in 2011 expect
to have an average income of £16,600 - marginally higher than
2010’s figure of £16,500.

Vince Smith-Hughes, head of business development at Prudential,
said: “It is good news that average retirement incomes for women
have risen, but unfortunately the gender gap remains stubbornly
wide.

“There are a number of actions that women can take to help to
boost their retirement income. For example, it is a good idea to
maintain href="www.pru.co.uk/pensions_annuities/startpension/">pension
contributions during any career breaks and to explore making
voluntary National Insurance contributions after returning to
work.

“It is imperative for anyone looking to secure sufficient
retirement income to start saving as much as they can, as early as
they can and to seek professional financial advice when they are href="www.pru.co.uk/pensions_annuities/pension_guide/near_retirement/">
planning to retire.”

The retirement income gender gap is at its widest in the South
West of England where retired women expect £11,700 a year less than
men. Meanwhile in the South East of England the expected retirement
incomes for men and women are essentially equal.

The Prudential study also found that 28 per cent of women
planning to retire this year have no savings in private or company
href="www.pru.co.uk/pensions_annuities/pension_guide/individual_pensions/">
individual pension schemes compared with just 10 per cent of
men.

Notes to Editors:

Prudential’s Class of surveys were conducted by Research Plus
using an online methodology: 2011 survey conducted 6-14 December
2010 among 10,143 UK non-retired adults aged 45+ including 1,005
planning to retire in 2011. The 2010 study was conducted 3-10
December 2009 among 6,073 UK non-retired adults aged 45+ including
1,001 planning to retire in 2010. Class of 2009 study conducted
10-18 November 2008 among 7,685 UK non-retired adults aged 45+
including 1,000 planning to retire in 2009.

About Prudential:

‘Prudential’ is a trading name of The Prudential Assurance
Company Limited, which is registered in England and Wales. This
name is also used by other companies within the Prudential Group,
which between them provide a range of financial products including
annuities, life assurance, bond investment, a tax calculator and
retirement plans, which include href="www.pru.co.uk/pensions_annuities/prudential_pensions/">
pension plan and href="www.pru.co.uk/pensions_annuities/guide_to_choosing_your_annuity/annuity_tips_before_you_buy/">
pension annuity tips.

Media enquiries:
Ben Davies
3 Sheldon Square
London
W2 6PR
+44(0)20-7150-3017
www.pru.co.uk

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