06 Jan 2025
Closing the Gender Pension Gap: Insights from the 2024 Scottish Widows Women and Retirement Report
The 2024 Women and Retirement Report from Scottish Widows highlights both progress and ongoing challenges in addressing the gender pension gap. This annual report, now in its 20th edition, provides a comprehensive look at the financial realities faced by women as they plan for retirement.
Progress and Challenges
One of the most striking findings of the report is that around two million women in the UK believe they will never be able to retire. Despite this sobering statistic, there is good news: the gender pension gap is narrowing. However, the report indicates that achieving pension parity could still take another 20 years.
Policy Changes as Game Changers
The report emphasises the importance of policy changes in closing the gender pension gap. Extending auto-enrolment to include younger workers and those with lower earnings could significantly boost future pension pots. For example, implementing recommendations from the 2017 automatic enrolment review could increase the pension savings of an average 18-year-old woman by £47,000 in today’s money. This change could be transformative for future generations, helping them achieve financial security in retirement.
The Role of Employers
Employers also have a crucial role to play. Encouraging senior men to take parental leave and work flexibly can help balance work and family responsibilities, which are often disproportionately shouldered by women. Additionally, providing financial education in the workplace can empower employees to plan for their future and understand the impact of career breaks and part-time work on their pensions.
Empowering Women Through Financial Education
Financial education is a key theme in the report. By helping women understand the importance of pension saving and the benefits of workplace pensions, employers can make a significant difference. Encouraging employees to discuss their finances with family and friends, and to make the most of employer contributions and tax relief, can also help close the gap.
The Bigger Picture
The report calls for national collaboration to close the gender pension gap. This includes not only policy changes and employer initiatives but also societal shifts in attitudes towards gender roles and financial planning. By working together, we can ensure that future generations of women are better prepared for retirement.
In conclusion, the 2024 Women and Retirement Report from Scottish Widows provides a detailed and hopeful look at the progress being made towards closing the gender pension gap. While challenges remain, the combination of policy changes, employer initiatives, and financial education can help ensure a more secure financial future for women. As we look to the future, it is clear that continued efforts and collaboration are essential to achieving true pension parity.
Contact Wingate Benefit Solutions on 01883 332260 or at info@wingatebs.com to discuss how Wingate Benefit Solutions can assist you with the financial education of all your employees and their pensions.
