A recent report has revealed that there is a significant gap in pensions between men and women, resulting in the average woman having £7,600 less per year for retirement. This disparity is attributed to factors such as the gender pay gap in the workforce and women being more likely to take on unpaid caring responsibilities, leading to women saving only half as much as men in workplace or private pensions.
The Trade Union Congress (TUC) has highlighted this ongoing issue on Gender Pensions Gap Day, signifying the point in the year when women would no longer receive pension payments if the rates were equalized with men. Research conducted by the Prospect union indicates that the retirement income gap between genders is at 36.5%, more than double the average pay difference between men and women in employment.
In response to these findings, the Labour Party has revived the Pension Commission to investigate the underlying causes of this gap. TUC General Secretary, Paul Nowak, emphasized the importance of addressing these inequalities for future generations and ensuring that everyone, including women, receives adequate retirement income.
Sue Ferns, Senior Deputy General Secretary of Prospect, acknowledged some progress in closing the gender pension gap but stressed the need for more concerted efforts to prevent millions of women from facing unequal earnings during retirement for years to come. Prospect’s research considered various sources of retirement income, revealing that the average male pensioner receives significantly more per year than their female counterparts.
To help individuals track lost pensions and optimize their retirement savings, various strategies are recommended, including utilizing the government’s pension tracing service, exploring employer contribution matching schemes, maximizing state pension benefits, and considering switching providers to reduce fees and save money.
