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The Pension Gender Gap

The pension gap for those saving into defined contribution pensions is stark, with the median pension savings pot for men aged 50-59 standing at £75,000 whilst the comparable figure for women is £19,000. Moreover, 60% of women do not have a retirement plan.

Previous reports have tried to explain this gap in terms of confidence, risk aversion and financial literacy. Now a report from Edinburgh University looks to overturn that narrative; highlighting systemic, social, and situational factors such as financial stress and limited time as contributors. As a result, the report calls for a reshaping of pension industry approaches, including redesigning pension systems to better reflect non-linear working patterns. The report also suggests a redesign of defined contribution pensions that do not compound care-related contribution gaps as well as a better use of modelling tools which take account of more flexible working lives as people move between jobs or take time out.

If you are looking for advice on pensions or if your situation has changed and you may therefore need to review your existing pensions or investments, contact Beckworth by using one of the links on our website.