THE GENDER PENSIONS GAP – CAN IT BE CLOSED?
Published by the Pensions Policy Institute (PPI) and kindly sponsored by the Defined Contribution Investment Forum (DCIF). Briefing Note 114: The gender pensions gap – can it be closed? This Briefing Note outlines the factors which contribute to the gap in pension savings between men and women and looks at how factors affecting the gap may change in the future. It also explores options for altering investment practices in order to better meet women’s needs, and policy options for mitigating the effects of the gap on women’s outcomes.
- Women in their late 50s have around 50% less pensions savings than men
- Women will experience lower standards of living in retirement on average than men and a higher chance of suffering deprivation or poverty in retirement
- Only 24% of young women are very confident in managing financial decisions compared to 48% of young men
- The DCIF calls on DC pension schemes to review their approach to de-risking, cultivate more diverse trustee boards, better tailor member communications and provide more education on risk and retirement planning
- Introducing policy changes such as allowing bridging contributions, better financial education in schools, and easier pot transfers could also have significant benefits
