Career breaks could damage women's pensions by £4,680 a year-research

A case study from Duncan Lawrie Private Bank uses the example of a woman starting a 40 year career on a £25,000 salary, which increases by 3% a year. If she contributed 5% of her salary each year to a pension fund, she would accumulate an estimated retirement fund of £330,000. However, a five year career break with a gap in contributions would mean a lower retirement fund of £250,000. With annuity purchase, the first scenario could generate an annuity of £19,305 a year in today's prices. However, a five year gap in contributions would mean a significantly lower annuity of £14,625 a ye...