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Women are likely to end up with 11% less in their pension pots

One company blames 'motherhood and good daughter penalties', lack of information, and an insecure lifestyle

Apparently it's a saying that the only young people who really think about pensions are the ones working in them. Which could be just one of the reasons that women are disproportionately in danger zone of not having much in the pot when retirement comes around.

What it means: New research by a pension fund called Fidelity International shows that women currently in their late 20s or early 30s are likely to have 11% less saved up for retirement by the time they're 68.

A lot of the money for your pension comes from your workplace, through a scheme that everyone above 22 earning £10,000 or over is auto-enrolled into. It adds a certain percentage of your salary to your pension 'for free', though you're also expected to add into it from your own salary.

But in what Fidelity calls the 'motherhood penalty' and 'good daughter penalty', women are still more likely to work part-time for some of their lives, either to have kids, or to take care of elderly parents – which means they stop qualifying for pension contributions from their work.

Young people generally aren't thinking as much about their pensions as we probably should be: not only because of all the jargon and confusion around the subject, but also because the cost of renting a home, combined with insecure work, means saving for something we won't need for another 50 years time isn't very high on our priority lists.

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Reader Comments

  • RW

    Your right to a degree. You mentioned “the wandering Jew”.

    I elaborate that the Jewish people, historically have tended to migrate almost exclusively to locations that are economically and culturally vibrant already. I would speculate that Jews have thrived in these places and have often improved the bounds of their economies and knowledge base.

    You can also ask; how many massive entertainment conglomerates, Nobel winners or billionaires has Isreal developed? If Jews are so capable, why isn’t Tel Aviv the Rome of our time?

    Jews are successful because they value education, maintain a strong social cohesive, they actively monitor and have a good sense for Zeitgeist wherever they are and they carefully choose the places they settle and congregate themselves heavily in these choice locations.

    But most importantly (haulocaust increased the importance of this aspect), they actually designed their culture for success. They not only attend Harvard, they use what they learned to better the group as a whole. With as much, they studied intricate networking systems, adapted to it and in many cases improved upon them. (See how Japan acquired Aegis warships and made them better).

    Of course there is nothing wrong with any of this. It’s when you elaborately gain disproportionate power in any society where you would stand out, you must take care when attempting to make a society better (Civil Rights movement) and rewriting that society all together (mass immigration). Ask blacks in China, Mexico, Philippines or India how much opportunity they have? Go to businesses owned by their American diaspora and see how many blacks they hire. Go to Silicon Valley and see how many East or South Asian tech workers wish they could work with more black people. California might work as a state, but as a nation, I think your rolling the nuclear dice here. I hope we can succeed as a tolerant pluralistic superpower but at this stage in human societal development, it’s a pipe dream.

    And if Jews really are the icon for success, they would see that fundamental human successes happen over generations. Just look at the rest of the planet? Are we ready?