Analysis published by the union body reveals the impact cutting universal credit will have on low-paid workers.
Contributed by TUC
31/05/2022 - TUC
New TUC analysis published in May has found the pensions wealth gap in the East of England for women is one of the worst in the country, with men aged 45-64 having built up almost three times as much pension wealth as women in the same age bracket.
The analysis was published to mark Gender Pensions Gap Day, which falls 38% of the way through the year to highlight the fact that, nationally, women in retirement currently have pension incomes 38% lower than men on average.
It means that retired women effectively go for four and a half months each year without getting a pension, making 19th May gender pensions gap day – the day women pensioners start getting paid.
This income gap is partly caused by barriers women face in building up workplace pensions, resulting in lower levels of private pension wealth to supplement their state pension.
The analysis published by the TUC today also shows that in two-thirds of industries nationally women have built up workplace pensions worth less than half as much as men.
Why is there such a big gender pensions income gap?
The TUC says the main drivers of the gender pensions income gap are:
Which industries have the biggest gender pension gaps?
The UK pension system relies heavily on private pension saving – which generally means a workplace pension scheme – to supplement our low state pension.
New analysis of ONS figures commissioned by the TUC has revealed huge differences in the average amount of pension savings built up by men and women in most industries.
In manufacturing, wholesale and retail, and other service activities, women aged between 45 and 64 have less than a fifth (19%) of the pension wealth of male colleagues. And in administration and support services the average woman in this age group has built up almost no pension wealth at all and has a pension pot a hundred times smaller than the average man in this industry.
In 10 out of the 15 industries for which we have reliable figures – even those dominated by women including education and human health and social work – median private pension wealth for women is less than half that of men (36% and 31% respectively).
The TUC says that unless these disparities in pension wealth are tackled, the gender pension gap will persist when today’s workers reach retirement.
TUC East of England regional secretary Sam Gurney said: “Women face a whopping pension gap in the East of England. And at current rates of progress, it could take more than fifty years to close.
“Too many women are paying the price in retirement for taking time out of work or cutting back their hours when their children were small.
“Ministers must act now, or we will consign more generations of women to poverty in retirement.
“We need to fix our pension system so that all women can benefit from a workplace pension with decent contributions from their employer, regardless of how much they earn.
“And we must invest in childcare. Caring responsibilities are one of the key drivers of the pensions gap – and the gender pay gap. Making childcare cheaper is a vital part of our economic recovery and essential for enabling mums stay in work.”
Prospect Senior Deputy General Secretary and TUC President Sue Ferns said: “It’s shocking that we’re almost halfway through the year before we’ve reached the equal pensions point – how can it be right that women pensioners earn almost 40% less than men?
“It is time for the government to acknowledge the huge problem of the gender pension gap and start doing something about it. If we continue to close the gap at the current rate, it will be generations before women earn the same as men in retirement.
“The first thing the government needs to do is acknowledge the problem and ask ONS to start benchmarking the gender pension gap so we can properly measure progress year-on-year.
“Changing the auto-enrolment rules could be done quite quickly and would be one way for the government to demonstrate support for working women.”
Government action needed
Since Prospect started calculating the gender pension gap in 2015-16 it has reduced by just 2.8 percentage points, and if progress continues at this rate, it could take another 54 years to close completely. This means we would not reach parity until 2076.
The TUC is calling on ministers to take urgent action to close the gap more quickly.
Taking better measures to address the gender pay gap – like introducing mandatory action plans along with pay reporting – would help, but the union body also wants the government to:
All articles on this news site are submitted by registered contributors of EssexWire. Find out how to subscribe and submit your stories here »