A stark warning has been issued over a crippling retirement divide, as new analysis reveals women in the UK are facing a staggering £7,600 annual shortfall in their pension income compared to men.
The figures, which lay bare a profound gender inequality in later life, show the average woman's pension pot provides just £12,000 a year—a mere 60% of the £19,000 average income enjoyed by men.
The Lifetime Impact of the Pension Gap
This annual discrepancy isn't just a temporary setback; it accumulates into a devastating lifetime deficit. Over a typical 20-year retirement, this gap widens to a life-altering £152,000 shortfall for female pensioners.
Experts point to a perfect storm of factors driving this inequality, including career breaks for childcare, a higher proportion of women in part-time work, and the persistent gender pay gap that follows women from the workplace directly into their retirement years.
Beyond Pensions: A Wider Financial Inequality
The research further reveals that this pension divide is part of a broader financial disparity. Women's average overall wealth—encompassing property, savings, and other assets—stands at £65,000, less than half of the £135,000 average for men.
This financial vulnerability leaves women significantly more exposed to economic shocks and the rising cost of living during their retirement years.
A Call for Action and Awareness
Financial experts and campaigners are urging both policymakers and individuals to address this crisis. They emphasise the critical need for women to engage with pension planning early in their careers and for greater transparency around pension pots.
The report serves as a crucial wake-up call, highlighting that without significant intervention, generations of women face the prospect of a impoverished retirement, fundamentally undermining financial security and independence in later life.
