A report has found that shockingly, for women to retire with the same amount of pension money as a man, they’d need to work on average an extra 19 years.
The 2024 gender pensions gap report, launched by NOW: Pensions in partnership with the Pensions Policy Institute (PPI), revealed that by the time women reach retirement age, they will have average pension savings of £69,000. This is £136,000 less in pension savings than the average man, who will have saved £205,000 in the same period.
Joanne Segars OBE, Chair of Trustees at NOW: Pensions, said, “It’s hard to believe that by the time a young girl starts school at four, she will already be falling behind a boy of the same age when it comes to providing for her retirement. Yet this is the reality many girls face as they leave education and enter the world of work.
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“Despite enacting some important policies in recent years to improve financial opportunities, outcomes and equity between men and women – like auto enrolment and gender pay gap reporting – our report is a timely reminder of the work that still needs to be done. We believe it can and it must.
Our research is an important step in identifying, defining, and addressing the problem and what we can do as a society to fight for fair pensions for all.”
Lauren Wilkinson, Senior Policy Researcher, Pensions Policy Institute, added, “By their late 50s, women have average pension savings worth less than two-thirds of men’s, with a substantial proportion of this difference stemming from inequalities in the labour market, including differing working patterns and the Gender Pay Gap.
“While there are some pension policy options that could be introduced to potentially mitigate the Gender Pension Gap, it’s unlikely to significantly reduce without changes in labour market conditions and gendered divisions of domestic labour.”
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