Are you aware of the Gender Pension Gap?Go back
No doubt you have heard about the Gender Pay Gap and the importance this has on creating an equal workplace but have you heard of the Pension Pay Gap?
Research by Profile Pensions found that the inequality in the pension pots of men and women is more than double that of the gender pay gap.
Research by NOW: Pensions and the Pensions Policy Institute last year revealed that the average woman reaching retirement age has £106,000 less in her pension than a man, meaning a woman’s pension pot is ⅔ smaller than a man’s.
The research also revealed that 47% of the gap is down to women reducing their hours, often for childcare. The burden of care, which so often falls on women, accounts for the fact that over 75% of part-time workers are women. As you have to meet a £10,000 salary threshold to be enrolled into a workplace pension, many women who work part-time poorly paid jobs this is unattainable. Because of this, there are 3 million women who are effectively locked out of workplace pensions.
The Pandemics effect on women’s pensions
This spring saw pensions plummet with as nearly £20,000 wiped off the value of the average “defined contribution” pension pot for savers in their 50s when the stock market plummeted in March, according to figures compiled for Telegraph Money by Quilter, the wealth manager.
Before the pandemic, the median private pension wealth of women in their early 60s was one-third of men’s private pension wealth. A report published by the Pensions Policy Institute found that women accrue approximately £51,000 by that age, while men have about £157,000 of pension wealth.
According to Profile Pensions, a pensions advice provider, women’s “defined contribution” pension pots shrank 17.5 on average during the pandemic, compared to just 5.7pc for men.
According to Maike Currie, of investment group Fidelity International, there are currently 50% more women than men heading towards retirement without any private pension savings. Without proper financial planning, there is a risk the outbreak will only exacerbate this further.
If you are worried about your pension, visit Pension Wise for some helpful tips and information.
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