Pensions Equality: TUC Warns of Gender Pension Gap

The TUC has warned that the gender pension gap in the UK means that retired women effectively go over four months each year without receiving a pension – the equivalent of losing out on £7,600 a year on average.

This means that compared to men, retired women effectively stop receiving pension income from 21st August. The income gap between men and women in retirement is now 36.5%, more than double the gender pay gap.

The TUC explains that the main drivers of the gender pensions income gap are a mixture of unpaid caring responsibilities, the gender pay gap, and historic differences in state pension that have left currently retired women with lower state pensions on average.

To address this, the TUC has proposed three key solutions for narrowing the gender pension gap for women retiring in the future:

First, improving childcare and social care to allow more equitable sharing of caring responsibilities. Second, reforming the occupational pension system to phase out the £10,000 automatic-enrolment earnings threshold. Third, creating a Carer’s Credit in addition to existing National Insurance credits for carers, to replace lost workplace pension contributions.

This would mean carers qualify for extra state pension to replace some of the workplace pension they miss out on building up. The TUC has also welcomed the revival of the Pensions Commission, which brings together unions, employers and independent experts to explore long-term reforms.