THE gender pension gap is twice the size of the gender pay gap, new research by the trade union Prospect has revealed.
New analysis of responses to the DWP’s Family Resources Survey by Prospect reveals that the gender pension gap in 2016-17 was 39.5% which equates to an approximate average shortfall of £7,000.
This was twice the level of the gender pay gap which was 18.4% in 2017.
Prospect senior deputy general secretary Sue Ferns said: “These figures reveal the shocking scale of the gender pension gap and clearly demonstrate the need for the government to both recognise the issue and act urgently to address it.
“Gender-based economic inequality may start in the workplace, but it follows women for the rest of their lives.
“It is not acceptable that women are condemned to less comfortable retirements and greater anxiety about finances because of inherent unfairness in the labour market and structural problems in the pension system.”
The estimate of the gender pension gap will be published in an upcoming report by Prospect about tackling the gender pension gap which will be launched today (1 November).
The gender pension gap is defined as the percentage difference in average gross pension income for women receiving the state pension compared to the average gross pension income for men in receipt of state pension.
What causes the gender pension gap?
In analysing the causes of this gap, the report finds that occupational pension income is linked to salary so the gender pay gap feeds through to lower pension income, meaning women continue to be penalised even after they have retired.
However the gender pension gap is even bigger than the gender pay gap because women bear a disproportionate share of the burden of caring for children and other relatives and this leads to extensive gaps in their occupational pension scheme service.
Ms Ferns said: “First and foremost there should be a duty on government to produce an annual report on the size of the gender pension gap. This will focus attention on the problem and help build a consensus for action to tackle it.
“There are also practical steps that government must take such as abolishing the automatic enrolment earnings trigger which disproportionately excludes women from occupational pension scheme membership.”