A new report has found that while progress has been made in reducing the gender pension gap, it could take at least 20 years to close.
Currently, the average gap in pension savings at retirement shows women are behind men by as much as £100k, and unless significant action is taken this gap won’t close.
The Women and Retirement Report, carried out by Scottish Widows, has been following women’s retirement savings for the last two decades and shows that progress over this time has been driven by a combination of policy implementations, an increase in the number of women in employment, a decrease in the gender wage gap and a gradual shift in attitudes towards women’s roles.
However, the gender pensions gap remains at 30% in overall projected retirement income with as many as 42% of women on track to face poverty in retirement compared to 35% of men.
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Jackie Leiper, Managing Director, Scottish Widows, said, “Progress has been made on the gender pension gap over the last two decades thanks to game-changing interventions like auto-enrolment and improving equality on women’s pay and role in society. But we are still a long way from where we need to be. Without drastic action, the gender gap will take another 20 years to close, and there is a very real risk that we won’t see pension parity for many generations to come.
“Extending auto-enrolment to support the higher proportion of women who are self-employed, or in part-time work is vital, as is the establishment of a Lifetime Savings Commission. Urgent action must be taken and we must empower more women to take control of their money through life and into retirement, with education, support, and innovative ways to engage with their money.
“The last 20 years has seen a move towards gender parity on pensions – but there is still more work to do to ensure more women can live and enjoy the lives they want in retirement.”
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