Women in Ireland face significant retirement income challenges

Many women face challenges in saving enough for retirement. These challenges can stem from part-time work, caring responsibilities, and the ongoing gender pay gap. A report shows that women's pensions in Ireland are, on average, 26% lower than men's. Women often take time off work for caregiving, which affects their earnings and pension contributions. Childcare costs can also push women into part-time jobs, resulting in reduced salaries. This means their pension contributions are lower because employer contributions are tied to salary. Additionally, women's longer life expectancy means their retirement savings need to last longer. To combat these challenges, women are encouraged to take action regarding their pensions. Starting a pension plan early and joining employer-sponsored pension schemes are essential steps. If a woman earns €60,000 and does not enroll in a pension scheme, she could miss out on an employer’s annual contribution of €4,800. Experts suggest that women should prioritize their long-term financial security. Monitoring expenses and setting financial goals is crucial. Women should also consider their future needs when planning their finances. For instance, a comfortable retirement might require an annual income of around €40,000, which would necessitate significant monthly pension contributions starting earlier in life. Women should also be informed about their pension rights and need to ensure they have the correct PRSI contributions. If a woman takes time off to care for others, certain schemes can help her qualify for state pensions. It is important for women to actively participate in decisions regarding their partner's pensions as well. Investing in a pension is recommended over relying solely on savings. This shift can help women secure a more stable financial future in retirement. The emphasis on pensions is critical, as many underestimate their importance compared to other assets.