The gender pensions wealth gap for private pensions stood at 35 per cent from 2018 to 2020, although there is a smaller 32 per cent gap among people who are auto-enrolled.
According to figures from the Department for Work and Pensions, published today (June 5), the gap of 35 per cent for private pensions has narrowed from 42 per cent in 2006-2008.
In 2021, around £52bn was paid into the private pensions of women eligible for automatic enrolment compared with £62.6bn into the pensions of men.
The ‘gender pension gap’ measures the difference in the amount of private pension wealth held by men and women at around ‘normal minimum pension age’ – currently 55.
It is calculated before the pension has been accessed and excludes people who have zero pension wealth.
Commenting on the data, minister for pensions Laura Trott, said: “The success of automatic enrolment has transformed the UK pensions landscape and brought millions of women into pension saving for the very first time. However, while the participation gap has closed, the wealth gap persists.
“The publication of an official annual measure will help us track the collective efforts of government, industry and employers to close the gender pensions gap and ensure women can look forward to the retirements they’ve worked so hard for.”
Laura Myers, who is a member of LCP’s gender pension gap working group, said: “The publication of these statistics represents a vital first step in tackling profound gender inequalities in pensions, and Laura Trott is to be commended for getting this work done within months of coming into office.
“Not only does this report put the issue firmly on the government’s agenda, but it means we will be able to hold governments to account to make sure that progress is made on the yawning gap in pension rights between men and women.”
By age group, the gap is smallest for those in their thirties (10 per cent), peaks for those in their forties (47 per cent), before falling back at older ages.
DWP said that this pattern is "similar to the trajectory of the gender pay gap".
Kate Smith, head of pensions at Aegon, said regularly measuring the gender pensions gap should help to inform the impact of future pensions policy, such as the improvements to auto-enrolment and wider public policy.
“The world of pensions is constantly evolving and it is helpful to track the gender pensions gap, specifically within the population eligible for auto-enrolment, as well as separately for those with defined benefit and defined contribution pensions,” she said.
Since the introduction of auto-enrolment, the real term increase in total pension savings for women is more than £4bn higher than for men.
Between 2008 to 2020, pension wealth for the average woman increased from £50,000 to £94,000 by the minimum private pension age.
In contrast, between 2008 to 2020, pension wealth for the average man increased from £85,000 to £145,000.
Becky O'Connor, director of public affairs at PensionBee, said “there is far more to it” than having a pension through work and argued that the government data suggests there is not really a gap until workers reach their thirties, suggesting the problem is almost entirely down to when people hit their child-raising years and need to take some time out of paid work.
