[UK] Women over 65 are missing nearly two decades of full-time pay

The Gender Pay Gap has rightfully gained a great deal of attention but is another sex-based financial disparity having a greater impact on people’s lives? 

Moneyzine.com analysed data related to the Gender Pension Gap in the UK; the difference between retirement income for Men and Women. The results it found were clear: women face significantly bigger financial disadvantages when they retire than when they were part of the workforce.

The data gathered was on the gap since 2016. Moneyzine found that the most recent reports - from 2020-2021 - reveal the highest gap on record. The overall Gender Pay Gap decreased by 2.8 per cent during the same period.

This difference reportedly demonstrates an important fact: the Gender Pension Gap is not only a reflection of the Gender Pay Gap. Rather, several other factors - including difference in State Pension entitlements and more unpaid hours doing ‘care work’ - contribute to the gross inequality in retirement income.

The impact of inequality

The current Gender Pension Gap is 40.5 per cent - its highest level since 2015. However, the figures are even more disheartening when private pension wealth is considered.

In two-thirds of industries, women’s private pension wealth is reportedly less than half that of men. The overall private pension gender wealth gap is 56 per cent. 

For older women, the discrepancy is greater still. Women aged 65 face a pensions savings wealth gap of 66.5 per cent, meaning they would have to spend an additional 18 years in full-time employment to gain parity with their male counterparts.

Jonathan Merry - CEO of Moneyzine.com said, “At its current level, the Gender Pension Gap represents £7,100 less pension income for women. This has a material impact on women’s experience of retirement, as well as their financial independence and freedom.”

Source: Moneyzine.com

(Links and quote via original reporting)

The Gender Pay Gap has rightfully gained a great deal of attention but is another sex-based financial disparity having a greater impact on people’s lives? 

Moneyzine.com analysed data related to the Gender Pension Gap in the UK; the difference between retirement income for Men and Women. The results it found were clear: women face significantly bigger financial disadvantages when they retire than when they were part of the workforce.

The data gathered was on the gap since 2016. Moneyzine found that the most recent reports - from 2020-2021 - reveal the highest gap on record. The overall Gender Pay Gap decreased by 2.8 per cent during the same period.

This difference reportedly demonstrates an important fact: the Gender Pension Gap is not only a reflection of the Gender Pay Gap. Rather, several other factors - including difference in State Pension entitlements and more unpaid hours doing ‘care work’ - contribute to the gross inequality in retirement income.

The impact of inequality

The current Gender Pension Gap is 40.5 per cent - its highest level since 2015. However, the figures are even more disheartening when private pension wealth is considered.

In two-thirds of industries, women’s private pension wealth is reportedly less than half that of men. The overall private pension gender wealth gap is 56 per cent. 

For older women, the discrepancy is greater still. Women aged 65 face a pensions savings wealth gap of 66.5 per cent, meaning they would have to spend an additional 18 years in full-time employment to gain parity with their male counterparts.

Jonathan Merry - CEO of Moneyzine.com said, “At its current level, the Gender Pension Gap represents £7,100 less pension income for women. This has a material impact on women’s experience of retirement, as well as their financial independence and freedom.”

Source: Moneyzine.com

(Links and quote via original reporting)