Women in their mid to late 50s hold only around half (54%) of the pension wealth of men of the same age. according to new research from the Pensions Policy Institute. Differences in working patterns – women often take time out for childcare, for example – and lower pay are the main causes of the gap. The former reduced women’s pensions by 39% compared with men, while the gender pay gap accounted for 19%. However, the higher proportion of women working in the public sector partly offsets the overall difference. More generous public sector pension schemes up the average for women aged 55-59 by 12%. The Institute’s senior policy analyst and report author John Adams said: “The gender pension gap has become a severe inequality within the pensions landscape, with women remaining at significant risk of falling into pensioner poverty.”
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