Businesses join forces to banish inequity forming a new Pensions Equity Group, starting with gender pension gap
Launched today, PEG’s objective is to increase the number of people saving enough for their retirement.
It will call on large companies and pension scheme providers to offer greater support to members and workers.
It will also seek to:
– Develop a consistent way to measure pensions inequalities, starting with the pensions gap between men and women;
– Work with government and policymakers to achieve positive change;
– Share best practice to help employers address inequalities;
– Develop practical tools to empower individuals: and
– Highlight potential new products that may increase equity.
Jacqui Reid, partner at Sackers and member of PEG, said: “I am passionate about tackling the systemic barriers that disproportionately impact certain parts of our society.
“We want to do what we can to work with others in the pensions industry to tear down these barriers so that more people can secure the retirement they deserve, irrespective of their gender or background.”
Emma Douglas, director of workplace savings & retirement at Aviva, said: “Bringing together this comprehensive industry expertise will be a breakthrough in levelling up pension savings, which has been a long-time coming.”
Imbalance and inequity persist
Research from Aviva data showed the gender pension gap widen significantly from the age of 35, and significant gaps develop between how much women pay into their pension compared to men.
Workplace pension data for just over 5 million pension plans showed the gap between women’s and men’s pension contributions for 35-39-year-olds as 21%, up on the 18% gap identified in 2022.
The gap then increases to 24% for 40-44-year-olds and 27% for 45-49-year-olds before stretching to 32% for 50-54-year-olds.
This imbalance persists into retirement with women aged 60-65 years old having pension pots which are on average just over half (57%) the size of men’s pots at the same age.
Douglas added: “The government’s commitment to transforming auto-enrolment thresholds has the potential to deliver a real boost to the pensions of women, who are far more likely than men to work part-time.
“The lowest earners, and those working multiple or part-time jobs, will benefit from getting pension contributions from the first pound they earn. This is also welcome news for young pension savers, who will benefit from getting on the pension ladder earlier and those all-important employer contributions.”
The other members of PEG are: Abrdn; Aegon, Aon, Arc Pensions Law; Barnett Waddingham, Dalriada Trustees; Hymans Robertson; Legal & General; Lane Clark & Peacock; Mattioli Woods; MFS Investment Management; Now Pensions; Pinsent Masons; Pensions Policy Institute; Pensions and Lifetime Savings Association; Quietroom; Royal London Group; Smart Pension; Scottish Widows; WTW; and Universities Superannuation Scheme.
