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It will take 90 years for the gender pension gap to close from 2024, despite the gap recently reaching its lowest-ever rate, research from Almond Financial has found.
The research analysed trends in the pension gap over the past 18 years, from its highest peak in 2006 to the lowest figure to date in 2024, to estimate when the gap is set to close for an entire generation in the UK.
The analysis found that the largest gender pension disparity ever recorded was in 2006 when the gap was 42 per cent, reduced to 35 per cent in 2024, pointing out that it has taken 18 years for the gap to lower by 7 per cent.
Almond Financial said that the reasons behind the gender pension gap are complex and could not be solved overnight, explaining that although the gap is largely influenced by the gender pay gap, it also persists due to wider workplace issues and cultural norms that lower the average salary for women.
However, Almond Financial argued that employers could do more than the law requires to bring forward the due date of gender pension equality and suggested that with the Employment Rights Bill employers have greater legal responsibility to improve equality across the workplace.
Commenting on this, Almond Financial’s principal financial adviser, Sam Robinson, said: “Addressing the retirement shortfall in workplace pensions is a key priority for closing the gender pension gap, especially for lower-income workers.
“According to Almond Financial’s retirement shortfall report, the average UK worker will have a shortfall of £115,768 should they base their retirement income entirely on workplace pension pots.”
Robinson suggested ways employers could help equality in the workplace, including introducing a contribution match scheme, providing more than the 3 per cent contribution without requiring an employee contribution increase.
He also highlighted: “By promoting shared parental leave within your company and encouraging men to take their full entitlement, you can support women in returning to work sooner with full pay, which boosts their ability to save for retirement.
“Insufficient maternity packages can severely cut into women's earnings and retirement savings, especially for single mothers relying on one income and those with multiple children, who may resort to debt to get by.”
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