Women ‘lose out’ in pension stakes
Many women struggle financially in later life because they have inadequate pensions, according to the latest report from a leading think-tank.
The Economic and Social Research Council has claimed that because women are more likely than men to take career breaks and are more likely to be on lower salaries, their occupational pensions are worth considerably less by the time they retire.
Indeed, Help the Aged estimates that women earn on average £250,000 less over their working lives than men.
Dr. Jay Ginn, the report’s author, said: “Only improved state pensions with protection of caring periods, or alternatively a universal citizen’s pension, can ensure that women’s unpaid family care work does not lead to poverty and dependency in later life.”
However, despite the Government’s claims that it has increased funding for the pension system, Age Concern estimates that by 2050 the basic state pension will be worth just 7% of the average male income.
The Government is trying to encourage more people to take on private pensions in a bid to counteract the drain on the Treasury of an ageing population, but Liberal Democrat pensions spokesperson Steve Webb accused the Government of ‘complacency’ regarding retirement savings.
‘The whole strategy of relying more on private provision is bound to make matters worse for women, and they will continue to be the poor relation unless the Government acts quickly,’ he said.
Today’s report also draws attention to the negative impact of divorce on women’s access to pensions, questioning the value of derived benefits for surviving spouses and pension-splitting schemes.
