This is pensions awareness week and at Prudent Financial we are keen to help raise awareness of the importance of pension provision while remembering our ESG values.

The obvious and boring bits:

  • A pension can reduce our tax bill
  • A pension can reduce our company’s or employer’s tax bill
  • A pension is a really efficient way of providing for retirement

Of more interest:

The State Contributory Pension

Did you know however, the current full state contributory pension is a maximum of €253.30.  Will this get you very far? What is the difference between that and your current income and how will you bridge that gap?

The Gender Pension Gap

On average, an Irish man will have saved twice as much as an Irish woman for his pension. There are several reasons for this and include that many women have less secure and stable income and work in part-time roles. Many take extended breaks from the workforce to care for their children. In addition, many Irish women have been in low-paid employment where pensions have not formed part of their pay package. Others are just simply paid less than men! This leads to greater insecurity and instability for women and limits their independence. The gender pay gap that we have all heard about turns into a gender pension gap.

Women will be earning 35% (source: Insurance Ireland, 2022) less than men when they retire!

The Role of ESG 

A lot of the focus of ESG is on the environmental aspect. The recognition that you can do good for the climate with your pension is becoming widely known. But it’s good to understand the broader impact. ESG is not just about the Environment. The S stands for Social – how companies treat their staff and interact with their communities and so on. A gender pay gap does nothing to enhance a company’s performance in this area. Put blunty, those companies continue to keep sectors down based on their gender. A gender pay gap inevitably leads to a gender pension gap.

Why is this all important?

There are two lessons here:

1) we have a long way to go and

2) it is important to take control of our own destiny and not rely on others to take care of this for us.

I’m asking myself while typing this, why is a man saying this and using the words ‘we’ and ‘our’?  Well ask my colleagues and staff what they think of me, of working here and of our values. I’d like to think our suppliers also share this opinion. Then maybe check out some of the reviews our clients have given us.

Gender equality is good for everyone in life, work and sport.  Female role models give my daughters more to aspire towards in Work, Sport and Life.

Look at your pension and how you’re fixed. Come talk to us for guidance and we will be delighted to help.