A recent report highlighted a significant pensions gap affecting women, with the average woman having £7,600 less annually for retirement compared to men. This gap stems from factors like gender pay inequality at work and women taking more unpaid caregiving roles, resulting in women accumulating only half as much in workplace or private pensions as men.
The Trade Union Congress (TUC) has highlighted this ongoing disparity on Gender Pensions Gap Day, which signifies the point in the year when women would cease receiving any pension if paid at the same rate as men. Research conducted by the Prospect union revealed a 36.5% disparity in retirement income between men and women, more than double the average pay gap between the genders in the workforce.
To address this issue, the Labour party recently reinstated the Pension Commission to investigate the root causes of the gap. TUC General Secretary Paul Nowak emphasized the importance of ensuring retirement dignity and security for everyone, particularly underscoring the need to rectify inequalities for future generations.
Sue Ferns, Senior Deputy General Secretary of Prospect, noted that while progress is being made in closing the gender pension gap, concerted efforts are required to prevent millions of women from enduring unequal retirement earnings for the foreseeable future. Prospect’s research considered retirees’ incomes from occupational pensions, including defined benefit or defined contribution plans, alongside private and state pensions.
On average, male pensioners receive £402.32 per week, equating to £20,920.64 annually, whereas female pensioners typically receive £255.52 per week, amounting to £13,287.09 per year. To address lost pensions, individuals are encouraged to utilize the government’s free pension tracing service. Additionally, employees are advised to inquire about contribution matching schemes from their employers and explore ways to enhance their state pension entitlements. Switching to providers with lower pension fees may also help individuals save money in the long run.