Just 56% of women are on track to receive retirement income from a pension, compared to 68% of men, according to research by pensions, retirement and life insurance provider Scottish Widows.
Its Women and retirement report 2024, which surveyed 5,102 adults aged 18 and above, also found that fewer (49%) female respondents are on track for retirement income from long-term savings than men (61%).
Of those expecting a defined contribution pension, women were found to be on track to have a £130,000 smaller pension pot at retirement than men on average, while of those expecting other long-term savings in retirement, women are on track to have £39,000 less than men on average.
The report also highlighted that 42% of women and 35% of men currently face poverty in retirement, and that there is a projected 30% gender gap in overall retirement income.
Meanwhile, the ethnicity gap in overall retirement income sits at 37% for the Pakistani community and 5% for the White non-British community.
Jackie Leiper, managing director of Scottish Widows, said: “This report is the culmination of 20 years’ worth of research and forensic analysis into how financially well-prepared women are for their retirement. Encouraging progress has been made on reducing the gender pensions gap thanks in large part to government intervention and bold policy shifts. But the gender gap persists, and women still aren’t saving as much as men, with a projected 30% gender gap in overall retirement income.”
Sally Minchella, director at LawDeb Pensions, added: “Trustees are a key player in the implementation of pensions dashboards which, when fully functional, will provide a clear visualisation of important elements of pensions which have been built up over a career. For women, this will help demonstrate the impact of gaps and hopefully raise awareness of how they may be able to mitigate the impact. This sits within a wider comprehensive member communication strategy, which should help women to understand the options at their disposal to manage their benefits or take them in a different form should it be appropriate.”
Paul Leandro, partner at Barnett Waddingham, said: “By simply telling women to contribute more, we are overlooking the inherent fiscal, behavioural and societal issues that are contributing to the continuation of the gender pension gap. More broadly, it’s about creating a more robust and inclusive pensions framework that offers fairer solutions for everyone.”
