A recent report has highlighted a pensions gap that significantly affects women, leaving them with £7,600 less annually for retirement compared to men. This difference stems from various factors, including the gender pay gap and women being more inclined to take time off for unpaid caregiving responsibilities. Studies show that women typically accumulate only half the amount men do in workplace or private pensions.
The Trade Union Congress (TUC) has emphasized this ongoing inequality by marking Gender Pensions Gap Day, signifying when women would cease to receive a pension if payouts were equal to those of men. Research conducted by the Prospect union reveals a 36.5% disparity in retirement income between genders, more than double the average pay gap during working years.
In response to these findings, the Labour party has reintroduced the Pension Commission to investigate the root causes of this gap. TUC’s general secretary, Paul Nowak, stressed the importance of addressing these inequalities for future generations by reviving the Pensions Commission.
Prospect’s senior deputy general secretary, Sue Ferns, noted that while there has been some progress in narrowing the gender pension gap, further concerted efforts are needed to prevent millions of women from facing unequal retirement earnings for years to come.
The research by Prospect considered various sources of retirement income, such as occupational and private pensions, in addition to the state pension. On average, male pensioners receive £402.32 weekly, while female pensioners receive £255.52, highlighting the significant disparity in annual pension incomes.
To address potential lost pensions, individuals are encouraged to utilize the government’s pension tracing service. Furthermore, employees should inquire about contribution matching schemes offered by their employers to enhance their pension savings. Maximizing state pension benefits, switching to providers with lower fees, and exploring ways to boost pension income are also recommended strategies for securing a more robust retirement fund.
By taking proactive steps and addressing systemic inequalities, there is an opportunity to ensure a more equitable distribution of retirement income, providing all workers, especially women, with the financial security they deserve.
