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Women would need to work for an additional 18 years in order to have saved a similar amount of money into their pensions as a working man, according to a new report published by Now Pensions and the Pensions Policy Institute. 

The Gender Pensions Gap Report 2022 shows a growing divide in the gender pensions gap, in spite of the fact that women's employment rate is at its highest point in recorded history (72.7%).

The report estimates that women will have accrued a total of £69,000 in pensions savings by age. By contrast, over the same time period, the average working man will have saved £205,800 towards retirement.

The report found that because women spend, on average, ten years away from their careers to either start families or care for older relatives, this is a significant factor in the increase in the gender pensions gap. 

To make up this disparity, women would have to either start working full time from the age of four or would need to have worked in full time employment till the age of 83 to earn the same amount of money in retirement as men.

Furthermore, given the life expectancy of women is four years longer than men, women need to ensure they have saved more throughout their working life to ensure they have sufficient income levels in retirement.

Now Pensions head of campaigns Samantha Gould said: "Women make up the biggest proportion of part-time workers in the UK and with reduced hours comes reduced pay.

"Millions of women have not been able to save for a workplace pension, nor take advantage of their employer contributions or tax relief. Pensions policies and regulations have not kept pace with the way many of us now choose to live and work, especially since the Covid-19 pandemic."

Chief executive Patrick Luthi added: "We are campaigning for change, and we want to make the pension system better and fairer for all.

"There are about ten million employees who don't have access to a workplace pension, and as we know, if you don't have access to auto-enrolment (AE), it can make a significant difference in your retirement outcome, particularly for women who are still not paid the same as men.

"The gender pensions gap is continuing to grow and there is a lot more work that needs to be done. That is why we are asking the government to look at some of the policies that they have. Let us fight for fair pensions for all. "

The report advocates for the elimination of the £10,000 AE threshold, the removal of the earnings limit so AE contributions can be made from the first pound of earnings, and to reduce the AE age from 22 to 18.

Last month, the Trade Union Congress and Hymans Robertson both urged the government to take action to help reduce the gender pensions gap.article 9/6/2022 professionalpensions.com

FOR INVESTMENT ADVICE REGARDING YOUR PENSION OR OTHER INVESTMENTS PLEASE CONTACT Elliott Wilson ACSI DipPFS AF3

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