Across the UK, the average pension pot for a man was £40,084, whilst women’s savings were £24,445, according to Profile Pensions
Women in some areas of the UK are retiring with a pension pot that is nearly half (49.6 per cent) the size of men’s pension savings, according to research from Profile Pensions, with “significant differences” across the country.
The report found that when looking at the country as a whole, the average pension pot for a man was £40,084, whilst women’s savings were 39 per cent worse, at £24,445.
However, Northern Scotland in particular has the widest gender pensions gap, with men’s pension savings nearly 49.6 per cent larger than those belonging to women, at £41,603 compared to women’s £20,978.
East Anglia also had a “very wide” gender pensions gap, with women reporting a pension value of around 48.5 per cent less than men’s at £23,391 (£45,429 for men).
In contrast, Greater London had the lowest pension gender gap, with women retiring with 29.9 per cent less savings than their male counterparts, and also boasted the largest average female pension pot, at 30 per cent more than the female national average.
The West Midlands also had a smaller than average gap, although it still had a difference of £11,581 (30 per cent) on average.
Commenting on the findings, Profile Pensions chief investment officer, Michelle Gribbin, said: What we see with these findings, sadly, is that the gender pay gap and the gender pension gap go hand in hand.
Men, on average, earn more than women, and therefore can save and receive larger contributions from employers into their pension pot. It’s clear there’s much more to be done to help women gain the security they need going into retirement, she said.
She said: Under current UK law, employers contribute 3 per cent to the employee’s pension pot, 4 per cent comes direct from their payroll and the remaining 1 per cent is made up by tax relief. Employees are able to decrease or increase this anytime that they see fit.