Employers have been urged to help reduce the gender pension gap as new analysis finds men have nearly twice the pension wealth of women on average.
Broadstone’s Wealth & Assets Survey shows that men hold a median of £75,700 in private pension savings, compared to just £42,500 for women. This gap is present across all age groups but widens significantly as employees near retirement.
Among savers aged 45-54, men have built up a median pension wealth of £108,100, which is £50,000 more than their female counterparts who have saved £57,900.
The gap is wider for people in the 55-74 age bracket. In this group, men have, on average, saved close to £200,000 in their pension pot, while women’s savings are just above £100,000.
The consultancy firm said employers have a crucial role to play in closing this huge divide. Broadstone urged employers to review their pension policies, offer targeted financial education, and ensure women receive the same opportunities to build long-term financial security as their male colleagues.
Rachel Coles, workplace engagement consultant at Broadstone, said: “The Wealth & Assets Survey puts concrete figures around the huge disparity in pension saving between men and women.
“Private pension savings are vital to achieving a decent standard of living in retirement by providing supplementary income to state-provided sources via benefits or the state pension. While the problem of pension adequacy is well known and understood, data like this is important in helping to uncover specific segments of society that are likely to be worst off.
“It highlights the need for more targeted support towards women to help encourage higher levels of pension saving while other initiatives that help lower the hurdles women face in progressing their earnings will also support this drive.”
Coles added: “Financial education will be a major part of building up awareness of the importance of later-life savings, the tax efficient benefits of pensions and how factors like starting to save as early as possible can help maximise savings by the point of retirement.
“In couples where there is an unequal distribution of wealth, the data also demonstrates the need for careful estate planning to ensure wealth can pass from husband to wife in the event of a death.”
