NEVER mind the latest designer handbag or Jimmy Choo shoes, the accessory every smart woman should have is a pension. However, when it comes to pensions men are from Mars and women are from Venus.
If we assume that women who are not in the workforce do not have a pension, it means that almost three out of four women do not have a pension. Half of all women in the workforce have a pension compared with 58pc of men, according to the Pensions Board. This is crazy as women actually need pensions more than men because:

• Women earn less than men. Women’s income in 2007 was around two-thirds of men’s income, according to the Central Statistics Office (CSO).

• Women live longer. Life expectancy for women in Ireland was 81.6 years in 2006, nearly 5 years more than the value for men of 76.8 years, according to the CSO. There are 111,000 more widows than widowers.

• Divorce is more common. Almost one in three marriages ends in divorce or separation. The 2006 Census showed that there had been a 500% rise in marital breakdown since 1986 with over 200,000 people in Ireland now divorced or separated.

• Women are more likely to be hit by career interruption. It is common for women to take a career break when their children are young. This can deny them promotional opportunities and ensure they earn less than men.

•  Women are more likely to work part-time.

•  The 2006 Census recorded 400,000 people working in the home, of which 96pc were women.

 A recent study in the UK estimated that it could cost on average £30,000 (or €36,222) to replace a women or man who works in the home, in terms of the cleaning, child minding and other jobs they do.

What women should do
It is hugely important that women start a pension, even if it is only small at the beginning. A PRSA (personal retirement savings account) is a flexible pension allowing you to stop and start contributions, and take it with you to different employments.
The big advantage of pensions is the tax relief. For working people, contributions (up to Revenue limits) benefit from tax relief at your highest rate of tax. So if you contribute €100 a week to your pension and pay tax at the higher rate (41%), the net cost works out at €59 a week. And the contributions are relieved of PRSI and health levy.
Even if a women qualifies for a full Contributory State pension (€230 a week), many women will still suffer a lower standard of living in retirement. So it seems that stay-at-home yummy mummies risk a lower standard of living when they put their feet up later in life.
No wonder they say pensions were invented for men, by men!