The full extent of the gender pension gap has been revealed, with retired women getting €153 less a week in pensions than men. A new report from the Economic and Social Research Institute (ESRI) has found that men get €433 on average, with women receiving just €280. This means men are getting a third more than women in their pension pots - a gap of 35pc. Over a year, retired women receive on average almost €8,000 less than men.

Given the unique challenges women face, it comes as no surprise that their pension savings are considerably less than those for males. The more disruptive the working lives of women are, cutting hours to care for their children or elderly parents puts them at a disadvantage and means their salaries lag behind men’s by a fifth. Shorter hours mean less take-home pay, reducing the amount women are able to save in a pension. Most worryingly of all, over four in ten women between 40 and 59 years old haven’t started planning for retirement.

It is not surprising therefore that men generally save more into their pensions than women do over their working lives and this is the main reason a woman's pension often pales in comparison to a man’s. Many women go on maternity leave between the ages of 27 – 37. This is a period when a lot of men make their career moves up the ladder and unfortunately many women are out of the workforce at just the wrong time.

This makes women very vulnerable. Without adequate savings of their own, if the relationship breaks down or their partner dies before them, they could be stuck on the breadline for the rest of their lives.

So what can you do to ensure you won’t be one of those women?

A recent survey conducted by the Irish Brokers Association points towards the existence of a knowledge gap between men and women when it comes to an understanding of pensions. Some 55% of men responded that they had “no” or “some” knowledge of pensions; that figure rose to 73% for women. This definitely requires further investigation and action.

One way of narrowing this gap is to ensure more women qualify for a full contributory State pension. While there are fears about its future viability, the fact remains that in order to replace the State pension in its current form you would need a fund of about €250,000. The state pension is one of the biggest entitlements you will ever get, far in excess of anything you might earn via maternity benefit, jobseekers’ allowance or even child benefit. So don’t let your benefit be whittled away by failing to take action to ensure that you qualify for the top rate of pension. The top rate of the State pension currently pays out €248.30 a week. But not everyone is entitled to this, and depending on your level of contributions, you may find that you only qualify for a lower rate.

Unfortunately too many women rely on the pension of their husband or partner when they retire and this can be a big mistake. If you are married but don’t qualify for a pension in your own right, you may be entitled to get an increase on your spouse’s pension, known as a “qualified adult” pension. This is offered at a lower rate of up to €165.40 (under 66)/€222.50 (over 66) a week. However, the payment is means-tested and some women may struggle with the concept of continuing to be dependent on their husband in retirement. Many women feel it’s extremely unfair and suffer from a loss of dignity. One way this payment has changed in recent years is that since 2007, the “qualified adult” can apply to have the payment paid directly into their account.

For stay-at-home mothers relying on their husband’s private pension may be their only option. Make sure you understand what you can expect from your partner's pension if you're in this situation. If your spouse is buying an annuity (pension income at retirement) with his pension pot it is very important to discuss and agree what pension will remain in the event of his death.

Although anyone can open a Personal Retirement Savings Account (PRSA - a type of personal pension), it often doesn't make financial sense for a stay-at-home mother to pay into one: If you are a stay-at-home mother earning no income in your own right, you won't be able to claim income tax relief against pension contributions. Remember as well that you may be taxed when you draw down the PRSA on retirement many years into the future so you could end up with a pension fund you got no tax relief on giving you an income that you will pay tax on. That's not exactly great tax planning. I would recommend you speak to a financial advisor before you start a pension plan to ensure you are getting the best advice and even if you can only afford to put a tiny amount away each month, do this regularly and it could make all the difference to ensuring a dignified retirement.

Regards

Anne O’Doherty