Gender pension gap in the UK may take two more decades to close without urgent reforms.
- Women on average have £100,000 less in pension savings than men at retirement.
- Current gender pensions gap stands at 30% with many women facing poverty in retirement.
- Policy changes have helped, but significant disparities in retirement income persist.
- Scottish Widows calls for a systematic approach to empower women’s financial futures.
The latest report from Scottish Widows highlights a significant challenge facing the UK’s economic future—the gender pension gap. Women, on average, retire with £100,000 less in pension savings compared to their male counterparts, leaving many at risk of financial insecurity later in life.
The study reveals that, despite some progress influenced by policy changes and an increase in female employment, the gap still stubbornly sits at 30% in terms of projected retirement income. This means that two-fifths of women are likely to face poverty during retirement, significantly more than their male peers.
Presently, the average woman is predicted to receive £12,000 annually post-retirement, a sum that is starkly lower than the £17,000 predicted for men. This difference not only highlights a financial shortfall but also shows that women often fall below the minimum retirement standards needed to cover basic living expenses.
Only 56% of women seem likely to receive income from a private pension, highlighting a disparity when compared to the 68% of men. Furthermore, 49% of women are saving enough to ensure some financial security after retirement, compared to 61% of men.
Jackie Leiper, managing director of Scottish Widows, emphasized the need for substantive changes such as the expansion of auto-enrolment policies to include more women, especially those in self-employment or part-time work. She also called for the establishment of a Lifetime Savings Commission as part of a broader effort to empower women through financial education and support.
Without swift action, gender equality in UK pension savings remains a distant goal.
