The gap between women's and men's annual average expected retirement incomes has grown by £1,000 in the last year, according to research from Prudential.

The annual research which has been collected over the last decade, tracks future financial plans and aspirations of people planning to retire in the year ahead.

This year's figures show that women expecting to retire in 2017 will be nearly £6,400 a year worse off on average than their male counterparts, and nearly £200 a year worse off than women who retired in 2016.

Women this year expect an average annual retirement income of £14,300, which is the second highest on record although slightly down on the £14,500 for those retiring in 2016.

This year's female retirees are feeling slightly more confident about their finances, however, with 50 per cent saying they are financially well-prepared for retirement, compared with 48 per cent in 2016.

Meanwhile, as women's incomes stagnate, men's expected retirement incomes have shown a fifth consecutive year of growth.

Men retiring this year expect an annual retirement income of £20,700 – £900 a year more than last year which is helping drive the gender gap to its highest level for three years.

The Prudential study, which has tracked the retirement income gender gap for 10 years, shows that men retiring this year will be 45 per cent better-off than women.

The gender gap was at its widest in 2008 when the average expected retirement income for men was 84 per cent higher than that expected by women.

Kirsty Anderson, a retirement income expert at Prudential, said: "It is encouraging that many women planning to retire this year feel financially well-prepared for their years in retirement. In fact, women's expected retirement incomes this year are the second highest on record.

"However, the gender gap in retirement incomes continues to grow, probably reflecting the fact that many women will enter retirement having taken career breaks and changed their working patterns to look after dependants.

"Unfortunately, as a result, many women will end up with smaller personal pension pots and some are also likely to receive a reduced State Pension."

"However, with a greater number of women staying in the workforce for longer these days, and employers increasingly offering more flexible working patterns, the outlook is more positive for women's retirement incomes in the future."

First published 30.06.2017

Lindsay.sharman@wilmingtonplc.com