Men’s DB annual pensions are worth nearly twice the value of women’s, at £13,900 compared to £7,500 net per annum, while their DC pensions are worth more than three times as much, at £90,000 compared to £28,500.
The findings come from a Department for Work and Pensions analysis of 7,802 adults aged 62 to 65 from the 1958 National Child Development Study, examining their preparation for retirement and overall pension adequacy.
Around 8 in 10 participants had some form of private pension, but women were more likely to rely heavily on the State Pension and less likely to meet a moderate Retirement Living Standard.
Meanwhile, nearly half, 47 per cent, of participants were expected to depend on the state pension for between 67 and 100 per cent of their retirement income. This group was more likely to include women, those with lower educational attainment, the self-employed and renters. Around half were also estimated not to have sufficient pension income to maintain their pre-retirement standard of living.
Additionally, half had less than £25,000 in household savings and 16 per cent had no savings at all. Those without private pensions were significantly more likely to have experienced persistent low income, 55 per cent compared to 14 per cent of those with pensions and were more likely to rent their homes.
Broadstone head of DC proposition Kelly Parsons says: “This stark disparity underlines that the gender pensions gap remains one of the biggest structural inequalities in the UK retirement system. The fact that men’s DB annual incomes are almost double those of women and DC pots more than three times the size reflects a long-standing combination of lower average earnings, career breaks, higher rates of part-time work and lower contribution levels.
“While auto-enrolment has brought millions more women into pension saving, these figures show that participation alone is not enough to close the gap. The next phase of reform needs to focus on contribution adequacy and targeted engagement with groups at the greatest risk of poorer retirement outcomes.
“For employers, this is also a workforce issue. Better scheme design, more inclusive contribution structures and support around life events such as parental leave can make a meaningful difference. Without coordinated action from policymakers, employers and the industry, today’s imbalance risks becoming tomorrow’s retirement inequality.”
