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TAKING a five-year career break can cost women around €200,000in lost pension money, a survey has found. The findings have prompted a warning to women who take time out tomind children to carefully consider the impact on their retirementfund. The figures, based on someone who earns €50,000 a year, showthat not enough consideration is given to opting out of theworkforce to raise a family. Stay-at-home mothers also lose out on a salary along with thechance to build up a decent pension. IFG Corporate Pensions said the findings of its research meant thatwomen were being hit more than previously thought when they opt outof the workforce. The €200,000 reduction in the pension fund meant that up to athird of a typical retirement fund was gone, Samantha McConnell ofIFG said. "A reduction of almost one-third of the target pension fund seems alot considering that this worker has only been away from theworkplace for a relatively short percentage of her overall workinglife," Mr McConnell said. Women who take a career break when their children are young mayalso end up taking other periods out of the workforce because ofthe pressure of having dual roles, IFG said. This means that even after re-entering the workforce, they may notlast until the new state retirement age of 68. "Due to the largely fragmented career path of many women and the impact this has on their pension fund, it isimperative that women give greater consideration to their pensionand their longer-term finances," Ms McConnell said. Longevity One option was to put extra money into the husband's fund while thewife was at home. And she added that complicating matters was the fact that womenlive longer than men. "And the crux of the matter is that women actually need more moneythan their male partners at retirement as longevity statisticsindicate that women who reach retirement age can expect to liveuntil 88, compared to men's life-expectancy of 85." Many women will end up out of the workforce for between five and 15years. Once they return after a gap like this their employer maynot make a very big contribution to a retirement fund on theirbehalf. Separate figures out yesterday showed that the pensions funds fellby 2.1pc in May. Over the last three years the average fund rose by 9.2pc a year.But over 10 years the annual rise was just 2.2pc, just above theannual inflation rate, according to calculations by RubiconInvestment Consulting. - Charlie Weston Personal Finance Editor Irish Independent. We are high quality suppliers, our products such as Hamburger Mini Speaker , Wireless Stereo Bluetooth Headset Manufacturer for oversee buyer. To know more, please visits Egg Shaped Speakers.
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