![[UK] Female teachers’ pension pots 28% smaller than their male colleagues’](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-African-american-female-teache-423367307_1200x.jpg?v=1634040388)
According to new research, the average pension paid to female teachers through the Teachers’ Pension Scheme (TPS) in 2020 was over a quarter less than that paid to male colleagues, Independent Education Today reports.
Specialist financial services mutual Wesleyan found that in 2020-21, female teachers received £11,581 a year, compared to £16,034 for males; a ‘gender pension gap’ of 28 per cent.
One factor likely to contribute to such a divide is pension growth lost when members take time away to have and raise children.
While members can take statutory maternity leave of up to a year - during which time they remain in employment - statutory maternity pay only covers 39 weeks. Leaving three months where teachers who choose to take a full year’s leave will receive no pensionable income at all.
Wesleyan’s own research reportedly revealed that 38 per cent of female teachers in England do not know that taking maternity leave will reduce their final pension pot. This rises to 51 per cent of female teachers in their 20s.
A more significant impact on pension growth would be faced by those who leave their employment entirely to meet caregiving responsibilities; such as taking a career break to raise children.
Wesleyan’s analysis of the TPS data highlighted that many female teachers are potentially at risk of not having enough money to meet their needs in retirement if current trends continue.
Its own research showed that 57 per cent of female teachers expect to need more than £25,001 a year in their retirement; a gap of at least £13,420 a year, using the £11,581 2021-21 average that they will need to make up via sources other than the TPS.
Linda Wallace - director of Wesleyan - said, “Factors like career breaks to meet caring responsibilities are contributing to shockingly disparate pension pots for men and women in the teaching profession.
“These figures not only highlight a gulf in the pension women and men have to access in retirement, but also the shortfall women face in their retirement income. Even if the maximum state pension of £9,339 a year is taken into account, many female teachers could be at risk of being without the money they expect they’ll need.
“The pension impact of career breaks won’t just affect female teachers alone - anyone taking family leave or time out of employment could be affected. With that in mind, it’s imperative that teachers are carefully and regularly reviewing their plans to ensure they aren’t caught out.”
Source: Independent Education Today
(Links via original reporting)
According to new research, the average pension paid to female teachers through the Teachers’ Pension Scheme (TPS) in 2020 was over a quarter less than that paid to male colleagues, Independent Education Today reports.
Specialist financial services mutual Wesleyan found that in 2020-21, female teachers received £11,581 a year, compared to £16,034 for males; a ‘gender pension gap’ of 28 per cent.
One factor likely to contribute to such a divide is pension growth lost when members take time away to have and raise children.
While members can take statutory maternity leave of up to a year - during which time they remain in employment - statutory maternity pay only covers 39 weeks. Leaving three months where teachers who choose to take a full year’s leave will receive no pensionable income at all.
Wesleyan’s own research reportedly revealed that 38 per cent of female teachers in England do not know that taking maternity leave will reduce their final pension pot. This rises to 51 per cent of female teachers in their 20s.
A more significant impact on pension growth would be faced by those who leave their employment entirely to meet caregiving responsibilities; such as taking a career break to raise children.
Wesleyan’s analysis of the TPS data highlighted that many female teachers are potentially at risk of not having enough money to meet their needs in retirement if current trends continue.
Its own research showed that 57 per cent of female teachers expect to need more than £25,001 a year in their retirement; a gap of at least £13,420 a year, using the £11,581 2021-21 average that they will need to make up via sources other than the TPS.
Linda Wallace - director of Wesleyan - said, “Factors like career breaks to meet caring responsibilities are contributing to shockingly disparate pension pots for men and women in the teaching profession.
“These figures not only highlight a gulf in the pension women and men have to access in retirement, but also the shortfall women face in their retirement income. Even if the maximum state pension of £9,339 a year is taken into account, many female teachers could be at risk of being without the money they expect they’ll need.
“The pension impact of career breaks won’t just affect female teachers alone - anyone taking family leave or time out of employment could be affected. With that in mind, it’s imperative that teachers are carefully and regularly reviewing their plans to ensure they aren’t caught out.”
Source: Independent Education Today
(Links via original reporting)