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The Department for Work and Pensions (DWP) has published its latest statistics measuring the gender gap in private pensions. The latest figures cover the period 2020 - 2022.
The DWP’s measure of the gap is defined as the difference between female and male median uncrystallised private pension wealth. The statistics focus around the current normal minimum pension age range of 55-59. The gap is quoted as 48%.
Since the last set of figures were issued, the Office of National Statistics have changed the method of calculating the estimated value of defined benefit pensions and as a result the figures are not comparable with previous releases. (The figures released for the period 2018 – 2020 showed a gap or 35%.)
The most recent data estimates the median fund wealth of £81,000 for woman and £156,000 for men. This would provide an estimated pension annuity of £6,000 per year for women and £11,000 a year for men, a gap or around £5,000 a year.
The size of the gap varies widely according to age ranges. The smallest gap is for those aged 25-29 (22%) and the largest in the age range 45-49 (52%). The DWP note that this is similar to the gender pay gap which would be expected.
Automatic enrolment has significantly increased the number of people saving into workplace pensions. Participation among eligible employees in 2023 is equal between men and women in both the private (86%) and public sectors (93%). However, as more women than men work in the public sector there are a greater proportion of eligible woman in workplace schemes overall – 89% or eligible women compared to 87% of eligible men. Over the long term this may help to reduce the gap but of course will also depend on earnings and contributions rates moving closer together.
Source: Techlink Professional
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Approved by 2plan wealth management Ltd on 20/05/2025