A new study reveals a stark reality for millions of female state pensioners in the UK: many may have to work until they are 86 to achieve pension wealth comparable to men. According to data from the Department for Work and Pensions (DWP), women currently receiving state pensions would need to extend their working lives an additional nineteen years beyond the standard retirement age of 67 to match male pension savings.
Samantha Gould, Head of PR and Campaigns at now:pensions, emphasized the systemic nature of this challenge: “For far too many in our society, a comfortable retirement remains out of reach, usually through no fault of their own.” The issue is particularly acute among underpensioned groups, including ethnic minorities, people with disabilities, carers, and single mothers, whose private pension incomes are 18 to 64 percent lower than the UK average.
Women’s average annual incomes stand at just 80 percent of the UK average and only 67 percent of men’s average earnings. For single mothers, the disparity is even greater, with income levels at 60 percent of the UK average. Gould pointed out that these groups are frequently excluded from auto-enrolment pension schemes and often lack sufficient earnings to save adequately for retirement.
While economic challenges make immediate governmental remedies difficult, Gould stressed that inaction is not an option: “Action is needed now to reduce the pensions gap and allow everyone to enjoy the comfortable retirement they deserve.”
Lauren Wilkinson, lead researcher at the Pensions Policy Institute (PPI), noted that private pension incomes for underpensioned groups remain below 75 percent of average population pension incomes, with some groups experiencing significant declines since 2020. Though the inclusion of state pension and benefits narrows the gap somewhat, it remains substantial.
Wilkinson added that the current economic climate could widen these disparities further, complicating short-term policy solutions. Nevertheless, she emphasized the importance of a long-term strategy to address the ongoing pension inequities facing vulnerable groups.