Gender pensions gap double the gender pay gap

The analysis of more than twenty thousand customers shows that on average women in the UK face retirement with 39% less in their pension savings than men.

This is more than double the average 17.3% discrepancy between salaries, according to ONS figures.

London and the West Midlands are ahead of the rest with a closer pensions gap of 30% between the pension pots of men and women.

However, North Scotland fares the worst with women holding less than half as much in their pensions as men.

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, born 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.”