An analysis of the gender pension gap over recent years shows a big increase due to a drop in women’s average earnings.
The analysis by financial firm Fintuity found the gap between single male and female pensions rose from eight per cent in 2014/15 to 26 per cent in 2018/19.
It says the average incomes for men under 75 and 75 or over were £441 and £429 a week, while for women it was £333 for those under 75 and £315 for those aged 75 or over.
Fintuity says a woman in her 20s would need to save approximately £1,300 extra per year in order to close the gender pensions gap. The average 30-year-old woman would need an additional £2,000, a 40-year-old woman would need to save an additional £2,900 and a 50 year would need to save an extra £5,300 to close the gender pensions gap.
Income for pensioners includes an occupational pension as well as other sources, such as investments, personal pension, earnings and benefits. Occupational pensions income for men was on average 35 per cent higher than women in 2018/19, compared to 23 per cent four years earlier. The
The personal pension income gap was 63 per cent [up from 46 per cent in 2014/15] and the investment and earnings income gap between male and female pensioners rose from five and eight per cent in 2014/15, to 61 and 74 per cent respectively.
Ed Downpatrick, Strategy Director of Fintuity, said: “Despite government initiatives to improve the pensions income for women, it’s clear that no amount of support programmes can make up for the occupational gender disparity in the UK. This problem needs to be tackled head-on, with correct support initiatives put in place to enable women to get a much fairer deal.”