New analysis of ONS data from advice firm Profile Pensions found the retirement ‘gap’ for women is more than double the gender pay gap.
On average it found that women across the UK face retirement with 39% less than men; more than double the average 17.3% discrepancy between male and female salaries.
London and the West Midlands are ahead of other regions with a pensions gap of 30% between male and female pension pots but women in the North of Scotland fared the worst with a pension gap of 50%.
|
Region |
Male pension pot (Average) |
Female pension pot (Average) |
Percentage difference |
|
North Scotland |
£41,603 |
£20,978 |
- 50% |
|
Southern Scotland |
£36,259 |
£22,194 |
- 39% |
|
North East |
£36,665 |
£22,333 |
- 39% |
|
North West |
£38,887 |
£24,170 |
- 38% |
|
Wales |
£34,092 |
£21,371 |
- 37% |
|
West Midlands |
£38,070 |
£26,488 |
- 30% |
|
East Midlands |
£39,608 |
£22,805 |
- 42% |
|
East Anglia |
£45,429 |
£23,391 |
- 49% |
|
Central Southern |
£47,588 |
£26,831 |
- 44% |
|
South West |
£37,639 |
£21,411 |
- 43% |
|
South East |
£47,105 |
£27,351 |
- 42% |
|
Greater London |
£48,778 |
£34,174 |
- 30% |
|
Northern Island |
£31,937 |
£21,474 |
- 33% |
|
Nationwide |
£40,084 |
£24,444 |
- 39% |
Source: Profile Pensions using ONS data
Profile released the study to follow International Women’s Day.
The analysis of ONS data from more than 20,000 households showed that women faced a raw deal on pensions.
Michelle Gribbin, chief investment officer at Profile Pensions, said: “Our analysis lays bare the huge disparity between male and female pension pots. This gender pensions gap is endemic in our society, borne out of hundreds of years of cultural factors such as salary discrepancy.
“There is a lot of awareness around the gender pay gap but we also want to highlight the huge disparity that many women approaching retirement are facing.
“We would like to see providers and employers being more transparent about how this retirement shortfall comes about. For example, what seem like slightly lower pension contributions (due to factors including a lower salary), invested over the long-term generate a sizeable financial shortfall.
“A heightened awareness of pensions is the best way that we can make sure this gap narrows. Figures like today’s should be a wakeup call to women across the UK to take action and make sure that they manage what savings they do have to reach their best potential.”