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Pensions gender gap widens in past decade

Old-Couple-Elderly-Pension-Pensioners-700.jpgThe gap in retirement incomes between men and women has nearly trebled in the past decade, Royal London has found.

Royal London has analysed Department for Work and Pensions statistics to show that in 2016/17 men had £85 per week more retirement income than women, which increased from a gap of £31 more per week in 2006/07.

According to the data, in 2016/17 the average retired single women had retirement income of £316 per week, while the average retired single man had retirement income of £401 per week.

In 2006/07, those figures were £294 and £325, respectively.

Royal London says earnings in retirement and occupational pension schemes are the two main factors between the widening gap.

It says over the earnings of single women in retirement are now slightly lower than 10 years ago at £19 per week in 2016/17 compared to £21 per week in 2006/07.

For men, the average earnings in retirement have more than doubled from £17 per week in 2006/07 to £37 per week in 2016/17.

Royal London also says that, while income from occupational pensions has increased for men and women, men have seen a more sharp rise.

Women saw their average weekly occupational pension income rise from £58 to £81 over the past 10 years, while men’s occupational pensions have risen from £83 per week to £125 per week.

Royal London policy director Steve Webb says: “Much more needs to be done to tackle the disadvantages faced by women in the later life jobs market as well as doing more to ensure women are building up better pensions in their own right in the future.”

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