Women possess barely half of the occupational pension savings of men, according to a report from the Trades Union Congress.
It states that, on average, women have £7,500 in defined contribution pension schemes, compared with £14,500 for men. The smaller the amount saved in the pension pot, the lesser the income that can be drawn from it.
In defined benefit – otherwise known as final salary – schemes, women typically have £32,00 in savings whilst men have £62,9000. The study, which was undertaken by the Pensions Policy Institute (PPI), also revealed that women receive smaller state pensions. It says that female pensioners receive 25% less than men, which amounts to £2,548 per year.
The report, named Under-pensioned 2016, also notes that care workers, black and Asian workers and the self-employed have smaller than average pensions.
The Trade Union Congress’ general secretary Frances O’Grady has remarked “Women, carers and ethnic minority workers will continue to have a tough time in the old age if swift action is not taken. We urgently need a debate on how unions, the government and employers can work together to build on the success of auto-enrolment”.
Previous research by the government has unveiled the fact that woman are more likely than men to opt out of auto-enrolment schemes, but that may be because a greater proportion of them work part-time. The Labour party is to commission a two-year study in to the future of pensions on Wednesday 2 March.
TNT Business Billy Rooney