Marvin OnumonuMen aged 62 to 65 have defined benefit (DB) pensions worth nearly twice as much as women in the same age group, receiving £13,900 a year compared to women’s £7,500, according to a report from the Department for Work and Pensions (DWP).
Men’s defined contribution (DC) pension pots were over three times larger at £90,000, compared to women’s £28,500.
Women in this age group were found to be more likely to rely on the State Pension and were less likely to reach a moderate Retirement Living Standard.
Kelly Parsons, head of DC proposition at Broadstone, said: “This stark disparity underlines that the gender pensions gap remains one of the biggest structural inequalities in the UK retirement system.
“The fact that men’s DB annual incomes are almost double those of women and DC pots more than three times the size reflects a long-standing combination of lower average earnings, career breaks, higher rates of part-time work and lower contribution levels.
“While auto-enrolment has brought millions more women into pension saving, these figures show that participation alone is not enough to close the gap.”
Parsons added: “The next phase of reform needs to focus on contribution adequacy and targeted engagement with groups at the greatest risk of poorer retirement outcomes.
“For employers, this is also a workforce issue. Better scheme design, more inclusive contribution structures and support around life events such as parental leave can make a meaningful difference.
“Without coordinated action from policymakers, employers and the industry, today’s imbalance risks becoming tomorrow’s retirement inequality.”
