Women could lose around £29,000 due to the pensions gender pay gap, according to new research.
A study, conducted by Which?, found that men are still getting a better pension deal than women.
The consumer champion analysed the latest Department for Work & Pensions (DWP) data and found significant disparities persist – with the average man receiving £153.86 a week and the average woman receiving £125.98 a week.
The research did however reveal that the situation has improved slightly. In August 2017, the average payment received by women represented 81.9 per cent of that received by men, up from 79.7 per cent in August 2015 and 77.7 per cent in August 2013.
There are 12.9 million people currently claiming their state pension – around a quarter of the adult population and how much people receive is strongly influenced by which group they fall into.
The main group of state pensioners is the 8.4 million people who receive basic and additional pension based solely on their own national insurance (NI) contributions.
This group is 59 per cent male and 41 per cent female, with an average weekly payment of £142.22. In many cases women in this group will have a lower pension because they may have taken a break from their career to have children.
Which? also found that if you are getting your pension under the old system (which existed until April 2016) you could be worse off compared with new recipients.
Those who have qualified since the new system was introduced receive an average of £150.35 per week compared with £137.81 under the old one. This works out at a difference of £12.54 every week and adds up to £13,041 over a 20-year retirement.
Speaking about the research, Harry Rose, Which? Money Editor said, “Our evidence shows how variable people’s state pension payments still are.”
“Many pensioners will be shocked by the differences in average payouts to men and women and those qualifying under the old and new systems.”
“Some pay gaps will close eventually, but not soon enough for some.”
“There are steps people can take to put themselves in a stronger position, for instance by planning their retirement budgets in advance and taking advantage of the forthcoming pensions dashboard.”
“But the DWP must also play its part by ensuring it provides accurate forecasts that are easily accessible.”
