Britain’s pension system is under mounting strain, with new figures exposing a deep divide that could leave millions struggling to get by.
Experts warn that the shortfall is so severe it’s the equivalent of retirees going without any pension for a third of the year.
Female retirees in Britain face a financial shortfall of £7,600 annually compared to their male counterparts, according to the Trades Union Congress. This disparity translates to a retirement income gap of 36.5 per cent between the sexes.
The TUC calculates that women essentially receive no pension income for more than four months of each year when measured against men's retirement earnings. Research from Prospect union reveals this pension gap exceeds twice the size of the current gender pay gap, which stands at 13.1 per cent.
Women nearing retirement age have accumulated merely half the workplace or private pension savings that men possess.
Several factors contribute to this substantial retirement income disparity.
Women are five times more likely than men to leave paid employment to care for children or elderly relatives, forgoing workplace pension contributions during these periods.
The situation proves particularly severe for BME women and those with disabilities, who are respectively seven and nine times more likely than white and non-disabled men to exit the workforce due to caring duties.
Throughout their careers, women consistently receive lower wages than men, resulting in reduced pension contributions. Women are three times more likely to earn below the £10,000 threshold required for automatic workplace pension enrolment.
Historical disparities in state pension provisions have also left today's retired women with smaller average state pensions.
Retirement crisis looms as millions of pensioners face 'four months a year with no pension'
| GETTYThe TUC has outlined several measures to narrow the pension gap for future retirees.
These include tackling pay and employment disparities through enhanced childcare provision, expanded flexible working rights, and reforms to parental leave arrangements.
The union body advocates eliminating the £10,000 automatic enrolment threshold that prevents many women from accessing workplace pensions. They propose calculating pension contributions from the first pound earned.
Analysts are sounding the alarm over Britain's pension crisis | GETTYB Additionally, the TUC recommends establishing a Carer's Credit alongside existing National Insurance credits.
This would compensate carers for missed workplace pension contributions by providing additional state pension benefits, acknowledging the financial impact of unpaid care work.
The Government's recent reestablishment of the Pension Commission brings together trade unions, employers and independent specialists to examine the pension gap's underlying causes.
Only 39 per cent are currently on track for a comfortable retirement income | GETTYThis body seeks to build agreement on long-term reforms to guarantee more secure retirements for millions, particularly women.
TUC General Secretary Paul Nowak said: "Everyone deserves dignity and security in retirement. But right now, too many retired women have been left without enough to get by."
Prospect Senior Deputy General Secretary Sue Ferns OBE said: "That the gender pay gap sits at 14 per cent is unacceptable, for the gender pension gap to be more than twice that is nothing short of disgraceful and shames a society that doesn't take action."