This can rise to as high as 51 per cent in their fifties, and be up to 55 per cent smaller than men’s on average at the point of retirement.
Data from the Office for National Statistics among full-time employees shows the gender pay gap was 8.3 per cent in April 2022, up from 7.7 per cent 12 months before. It estimates that women save a third less than men across the UK, creating a disparity of 40 per cent between men and women at the age of retirement.
Education, education, education
Punter Southall Aspire director of marketing Sarah Tolson recommends that employers support female workers by offering financial education to help them understand how to address the gap.
“Women are hit financially from all sides, with the impact of earning less than men affecting both savings and pensions. Even the gain on the state pension sees women still getting less overall,” she said.
“Add to the equation the fact that women are more likely to take a career break or work part-time when they have a family, and it’s little wonder many are at a big disadvantage financially by the time they retire.”
Around four in 10 marriages end in divorce in the UK, but women often lose out here because they do not understand the value of a pension. A 2022 Which? survey shows that only 15 per cent of couples include the pension as a joint asset to be shared.
Tolson added: “Knowledge is power, but often women are unaware of the consequences that taking a career break can have on pension savings, or that in a divorce, taking account of pensions when splitting up joint assets can make a big difference to future finances.
“We urge employers to help women improve their financial health by raising awareness of some of the issues around pensions and savings to help them make better financial decisions.”
All equal, but with different needs
In offering support for female employees, employers should not focus on equality, but equity in their support for women’s health and wellbeing, according to digital health platform Peppy.
Equity acknowledges that women have different needs from men, so resources and support should be allocated on that basis. Instead of treating everyone the same, they should provide support that meets those specific needs.
Francesca Steyn, director of fertility and women’s health services at Peppy, said: “Women and men will experience very different journeys in their careers, and as such have different needs at work. Unsupported, these needs quickly turn into lost talent for an organisation, widening gender gaps and an inability to attract certain demographics.”
This will recognise the need for specific health and wellbeing support, particularly for moments of high physical and mental stress, such as pregnancy, miscarriage and menopause, and for other non-time-specific conditions such as painful periods and endometriosis.
