The gender pay gap has been a battle ground for feminism since before the passing of the Equal Pay Act in 1970. Although the gap has tightened, this is still an on-going issue that activists are attempting to stamp out.
A gap in pay has a long term impact, beyond just household earnings, as it can also impact your pension. Pension pots can help support you in your old age, with the state pension set at 66-years-old - although this age keeps getting pushed back so young people may be working for much longer.
However, women could be missing out on £123k from their pension thanks to historic gender pay gap issues, time out for children and other factors.
Discover, learn, grow. We are Curiously. Follow us on TikTok, Instagram, Facebook and Twitter.
A new study from Scottish Widows for International Women's Day has shown that the average 25-year-old woman is on track to retire with £100k less than her male counterparts.
Although this is still a shocking gap in retirement funds it is less than the current average woman who retires with £123k less than the average man.
Scottish Widows suggest that this is not just due to the pay gap but also the "structural imbalances in the labour market" that continues today. It found that 25% of women are in part time employment compared to just 8% of men which impacts earning ability and has a knock on effect on pensions.
This is compounded by the fact women are much more likely to take employment breaks, with almost a third taking time for childcare and other caring responsibilities. Only 6% of men in the workforce are taking these childcare breaks, suggesting continued biases about women and homemaking responsibilities.
The pension firm is urging women to start their savings as young as possible, opting in to company schemes in their 20s and adding as much in as they are able.
Jackie Leiper, Managing Director of Workplace Savings at Scottish Widows said: "Get a head start in your 20s, as this can help off-set any drop in income later, if you choose to take a career break or work part time."
If you're able to save an extra £50 per month into your pension, by opting to contribute more, you could close the gap substantially by the time you reach retirement age. Your employer may put more into your pension if you up your contribution too.
Jackie added: "Take advantage of your workplace pension, this is a tax efficient way to save for your future. Employers must now offer a workplace pension so find out if you can join.
"Every time you pay in, the government and your employer pays in too. If you've had more than one pension you might have other pensions so could be worth tracking these down."
Finally, Jackie recommends we all start talking about pension more as we often "forget" to chat about retirement plans with significant others beyond the exciting stuff.
Speaking up about earnings and pensions forces a more open environment and could reveal the pay gap while you're still earning, which benefits pensions.
Do you have a story to share? We pay for stories. Email us at yourmirror@mirror.co.uk
