Women’s pension pots are, on average, 40 per cent smaller than men’s by the time they reach, but a few simple steps can help close the gender pension gap, says Camilla Esmund It was Pensions Awareness Week this week, which has hopefully encouraged savers to have a look at their pension pots and consider whether they’re on track for the retirement they hope for. It is also a timely reminder of the stark gender pensions gap – which remains a pressing financial issue of our time. Despite strides forward in workplace equality, women in the UK are still retiring with significantly less financial security than men.
Why the disparity? Well – how much time do you have? The gap has been well-researched, and it comes down to a combination of reasons. Naturally, the persistent gender pay gap plays a key role. This is then thrown in the mix with many other factors such as taking career breaks for children or caregiving, and longer life expectancies.
Once again, the impact of the ‘motherhood penalty’ shows itself. Unfortunately, it seems if women have children, the odds are stacked against them. After all, the UK has some of the highest childcare costs in Europe, and this can mean women are making sacrifices that impact their ability to build long-term wealth.
As policymakers grapple with solutions ( Labour has announced a ‘review into the pensions landscape more broadly) the growing gender pensions gap threatens to leave millions of women facing an uncertain financial fut.