There are plenty of national and international studies showing lower participation rates for women contributing to a pension and for those women who do participate, smaller pension pots.
The reasons and impact of the resulting pensions pay gap for women are manifold. In recognition of this and International Women’s Day this Sunday March 8th, we have compiled 7 simple step’s which women, and their employers, can take to help narrow the pension pay gap women experience.
- Join or set up a pension plan at your earliest opportunity. The funds built up can continue to grow even if you take time out during your career.
- Link salary increases to pension contribution increases. This is even more effective if committed to in advance. Simple percentage contribution rates do this automatically.
- Maximise contributions by availing of the maximum employer contribution rates and considering making Additional Voluntary Contributions (AVCs) where affordable.
- Continue making pension contributions, both employer and employee, while on maternity or other types of leave.
- If affordable make pension contributions while on a career break via a personal pension or PRSA. Take advantage of the tax reliefs available.
- Maximise contributions when returning to work after maternity leave or a career break.
- Take financial and/or investment advice which takes account of your specific circumstances and plans.
For further information on these steps, please consult your financial advisor or call us on 01 661 1022
*Please note this content is the view of the author and not of Independent Trustee Company