Women need to work for a further 19 years on average to reach pension parity with men, according to a new report highlighting the gender pensions gap.
The report, compiled by Now: Pensions and Stand, identifies a number of key areas that are contributing to pension inequality.
At the heart of this problem is the gender pay gap, and the fact far more women work in low-paid part-time work which may mean they are not automatically enrolled into workplace pensions. This issue is further exacerbated by the fact more women take career breaks for caring responsibilities and will typically not save into pensions during these periods.
But the report — She’s Earned It: Solving the Gender Pensions Gap — also highlights other potential issues that are worsening this pensions gap, including a lack of knowledge around pensions and low awareness of this problem. More than half of the women surveyed in this report (56 per cent) did not realise there was a pensions gap and they may have to take actions to address this.
Overall the report found that in total one in four women do not have a pension at all.
Now: Pensions points out that this issue starts early in women’s working lives. Among the among 18–24 year age group 4 per cent more men than women have a workplace or private pension. For those approaching retirement this figure has grown to 14 per cent.
The report adds that this this is contributing to insecurity among women about their future. Nearly half of women (47 per cent) surveyed for this report worry about their retirement security, with confidence plummeting among older women. This compares to 41 per cent of men.
The report also found that just under a third of (29 per cent) of women say they feel knowledgable about pensions, compared to 46 per cent of men. As a result a significant proportion of women (63 per cent) want better financial education and advice routes that are more tailored to their specific needs.
A similar proportion of (62 per cent) said they want the government to do more to tackle this pensions gap.
Now: Pensions head of PR and campaigns Samantha Gould says: “The gender pension gap isn’t just about numbers. It’s about real lives — about women who ’ve worked hard, cared for families, and contributed to their communities, yet still face a retirement with less. Decades of lower pay, career breaks for caregiving, and limited access to workplace pensions have left too many women behind.”
She called for better education and communication about these issues, including from employers, pension providers and advisers, alongside better financial education, particularly around savings and pensions.
She highlighted the importance of giving information about pensions to women at key points in their lives for example when they go on maternity leave, or during divorce.
She adds: “Women are less likely than men to have a pension in place, less confident in their savings, and less aware of how to navigate the pension system.
“That’s not just a financial issue, it’s a communications one. If people don’t see themselves in the stories we tell about money, or don’t understand the options available to them, they can’t take action.”
