The divide between the size of men and women’s pensions has widened by £27,000 as a result of the pandemic, with women now facing working years later to enjoy the same retirement.
Women’s pensions have become £183,936 smaller than men’s on average, according to a report by lender More2life and the Centre for Economics and Business Research think tank. It would take women an extra 14 and a half years of work to make up the difference.
This means women would have to work an average 54.5 years to reach the same level that a man saves in 40 years. That is despite women contributing a larger percentage of their income to their nest eggs.
The gender divide has worsened during Covid-19 lockdowns, the report found. The difference in total pension wealth has increased by £26,673 since the start of the coronavirus crisis.
Retirement poverty has become a greater risk among women as a result, who have an average retirement income of £14,964, compared with £20,712 for men, the report estimated.