When it comes to pensions, women have as little as 50% of the average savings of men.
A report by the Trade Union Centre (TUC) claims that women have £7,500 on average in defined contribution schemes, compared with the £14,500 that men have. In final salary schemes, women have an average of £32,000 while men have £62,900. Taken from The Pension Policy Institute (PPI) study, it is also claimed that women receive a lower state pension, with £2,548 – a figure which is 25% less than men.
The lower the amount saved into a pension, the smaller the income that can be withdrawn. What’s more, with government research showing that women are more likely to opt out of auto-enrolment schemes than men (possibly due to a larger proportion of women working part-time), they are significantly less likely to accrue as much.
Frances O’Grady, the TUC general secretary said:
“We urgently need a debate on how unions, government and employers can work together to can build on the success of auto-enrolment."