Gender Pensions Gap: Women reach their 50s with half the pension savings of men
- Gender Pension Gap for women aged between 45 and 49 is 47%
- Menopause symptoms can mean that women have to reduce their hours or stop working
Commenting on the DWP’s Gender Pensions Gap statistics, Clare Moffat, pensions expert at Royal London, says:
"Data released today by the Government shows the Gender Pensions Gap, the gap between male and female private pension wealth, is 35% for all women at age 55. But worryingly women aged between 45 and 49 have only around half the pension of men.
"While the introduction of automatic enrolment ten years ago has helped more women than ever save into a pension, the UK still faces a yawning gender pension gap.
Working part-time, shouldering caring responsibilities and menopause
"The working patterns of women and the fact that they might work more than one part time job – leaving them potentially ineligible for automatic enrolment - all have an effect on women’s pensions.
"Working patterns and caring responsibilities contribute to the gap. The Government stated in March that they will lower the age when someone is automatically enrolled into a pension to 18 from 22 and also that the lower earnings limit will be removed which means that there will be pension saving from the first pound of income.
"But there is another issue. Women are starting their 50s, traditionally a time when someone would be saving the most into their pension, with this huge gap in pension savings, and also dealing with the menopause and potentially caring for older relatives as well.
"Menopausal symptoms can prevent women from working and saving as much as they would like, with almost a million women leaving their job as a consequence, while many others are forced to reduce their hours. Quite apart from the loss of income, this also means women may miss out on important pension savings at a key stage in their life, resulting in them being up to £126,000 worse off in retirement, potentially widening an already significant gender pensions gap."
Notes to editor
Analysis by Royal London demonstrates the dramatic impact the menopause can have on women’s pension savings.
A 50-year-old woman in full time work until the state pension age of 67 could be better off by over £126k in pension savings, when compared to a counterpart who stopped working at the same age. Women reducing their working hours at age 50 could lose out on £63k in their pension pot.
| Full time | Reduced working hours from age 50 | Difference |
| £355,510 | £292,356 | £63,154 |
| Full time | Stop working at age 50 | Difference |
| £355,510 | £229,202 | £126,308 |
Royal London analysis: Based on a pension fund of £100k at age 50, earning £40k with 2.5% wage growth until state pension age of 67, investment growth of 5% (not including charges), monthly contributions of 10% and a 50% reduction in working hours/pay.
For further information please contact:
Neil Cameron, PR Manager
- Email: neil.cameron@royallondon.com
- Mob: 07919 171969
About Royal London
Royal London is the largest mutual life, pensions and investment company in the UK, and in the top 25 mutuals globally, with assets under management of £162 billion, 8.6 million policies in force and over 4,200 employees. Figures quoted are as at 31 December 2023. Learn more at royallondon.com.
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