The National Pensioners Convention is calling for an end to the ‘iniquitous’ gender pension gap which leaves many women pensioners in poverty.
Marking International Women’s Day, the NPC is also calling for a bridging of the gender pay gap to allow today’s female workers to earn enough to afford higher pension contributions and avoid falling into the poverty trap like their grandmothers.
More than one in five women pensioners in the UK are estimated to live in poverty* compared to one in four men, and the figure is higher among single women. Those, particularly older women who live alone, make up the biggest proportion of the two million pensioners currently living in poverty in the UK.
Research by the Pension Policy Institute (PPI) for their 2024 Gender Pensions Gap Report* found women on average retire with pension savings of £69,000, compared to £205,000 for men. The report concluded: ‘In order to close this gap, a girl would need to start pension saving at just three years old.’
Jan Shortt, NPC General Secretary, said: “The theme of International Women’s Day* on 8th March is a call to ‘Accelerate Action’ on gender equality. That’s why NPC will be writing to the Ministers for Women and Equalities and the Department of Work and Pensions - Bridget Phillipson MP and Liz Kendall MP – urging them to end the iniquitous pensions gap that means millions of particularly older and vulnerable women are living in poverty.
“Most people do not understand our two-tier state pension system which means more than two thirds of our 12.5 million pensioners – those who retired before 2016 – receive much lower pensions* than the new state pension figures often quoted in the press.”
The gap is largely due to older women in their late 70s, 80s and 90s who retired before 2016 having much lower state pensions, and occupational pensions because they took time out of work for family responsibilities. And they might not have been able to pay enough National Insurance to ensure that they even receive the basic/old rate.
Jan Shortt added: “The NPC is campaigning for everyone who retires – no matter their age, gender or contributions - to receive the same basic state pension, set at 70% of the living wage and above the official poverty level.
“No one should be penalised because of their circumstances from having a decent quality of life in retirement - and this starts with a decent income. But striving to bridge the gender pay gap to allow more women to afford higher personal pension contributions is equally important, and something any decent society should be committee to.”
“NPC is also advocating for the WASPI women to receive the compensation the Ombudsman recommended and not be ignored by the government. Rightly, successive governments wanted to equalise the retirement age for men and women – but the way it was done for those 50s born WASPI women is grossly unfair.”
ENDS
References:
*From April 2025, the basic (or old, pre-2016) state pension will increase from £169.50 per week to £176.45. The full rate of the new state pension will rise from £221.20 to £230.25. www.cspa.co.uk/news/state-pension-increase-announced/#:~:text=This%20will%20rise%20to%204.1,maintaining%20the%20pension%20triple%20lock
NB: WASPI – Women born before 5th April 1953 are on the old state pension, by being the academic year the pension age rose for 62-64+ -so the Sept-April cohort lost out on a state pension expected at 60 as well as receiving less pension (for life) than their younger classmates.
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