Government-backed Pensions Commission calls for action on gender savings gap
Summary
A government-backed commission in Britain says women have only half the private pension savings that men have when they retire. The commission will suggest ways to reduce this pension savings gap, which is linked to career breaks for caring and part-time work by women.Key Facts
- Women near retirement have about £81,000 in private pension savings, while men have about £156,000.
- The Pensions Commission plans to issue a report with recommendations next year on how to fix the pension system.
- Women’s pension savings tend to stop growing after having children, a problem called the "motherhood penalty."
- Men’s pension contributions roughly double in the years after their first child, while women’s stay the same.
- Women often work part-time or leave work to care for family, which affects their pension savings because they might miss out on workplace pension plans.
- The UK has the second-worst gender pension savings gap among rich countries in the OECD, behind Japan.
- The commission recommends changing pension policies and labour market rules, including better access to childcare, to close the gap.
- The commission is led by Jeannie Drake and includes experts from business and academia.
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