Jessica O'ConnorRetired women in the UK are losing out on an average of £7,600 a year compared with men due to the gender pension gap, the TUC has warned.
New analysis revealed the gap in retirement income between men and women now stands at 36.5% – more than double the gender pay gap, currently 13.1%.
The TUC said the shortfall is so severe that, in effect, retired women stop receiving pension income more than four months before the end of each year.
The union body pointed to unpaid caring responsibilities, persistent pay inequality, and historic differences in the state pension system as the main drivers of the disparity.
Women are five times more likely than men to leave paid work to care for children or relatives, missing out on workplace pension contributions.
BME and disabled women are disproportionately affected.
TUC General Secretary Paul Nowak said: “Everyone deserves dignity and security in retirement. But right now, too many retired women have been left without enough to get by. We must make sure that these inequalities are addressed for future generations.
“That’s why reviving the Pensions Commission – bringing together unions, employers and independent experts – is a vital step forward.
“We now have a chance to make sure everyone, including women, receive the decent retirement income that all workers need.”
Sue Ferns OBE, Prospect senior deputy general secretary, said: “The Gender Pension Gap is very slowly moving in the right direction but without a more concerted effort millions of women will continue to suffer from unequal earnings in retirement for much of the rest of this century.
“The first step was the success of Prospect’s campaign for the government to recognise and measure the Gender Pension Gap. The next step is for government to show the way as an employer and take real action to close the gap by adopting trailblazing reforms across all public sector pension schemes.
“That the gender pay gap sits at 14% is unacceptable, for the gender pension gap to be more than twice that is nothing short of disgraceful and shames a society that doesn’t take action.”
