• Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
  • Events
  • Whitepapers
  • Spotlights
  • Digital Edition
  • PPTV
  • Newsletters
  • Sign in
  •  
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
    •  

      You are currently accessing ProfessionalPensions via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0) 1858 438800

      Email: [email protected]

      • Sign in
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • YouTube
  • Register
  • Subscribe
  • Events
    • Upcoming events
      event logo
      Defined Benefit Consolidation Conference

      Professional Pensions is hosting this concise digital event on the 25th March to provide a crucial update on where the current regulation stands on DB Consolidators, assess the different models available, what the expected funding levels are and the governance requirements. This event will be a combination of short presentations followed by live Q&A’s with our expert speakers allowing plenty of time to answer your questions.

      • Date: 25 Mar 2021
      • Digital Conference
      event logo
      Defined Contribution Conference

      Professional Pensions Defined Contribution virtual event, hopes to take stock of the last year, and ask the important questions; are members saving enough and have we improved the member journey at retirement? This two part digital event will provide you with the latest thinking and innovation in the DC market during our snappy 15 minute presentations, with plenty of time to ask questions during our live speaker Q&A.

      • Date: 20 Apr 2021
      • Virtual Conference, Virtual Conference
      event logo
      Sustainable Investment Festival 2021

      The Sustainable Investment Festival will run online from 22-25 June and will include thought-provoking presentations from renowned keynote speakers, innovative breakout events and sessions specifically tailored to meet the information needs of fund selectors, financial advisers, pension consultants, trustees and scheme managers.

      • Date: 22 Jun 2021
      • Online, Online
      event logo
      UK Pensions Awards 2021

      The UK Pensions Awards – now in their 24th year – remain the industry's most prestigious accolades. They shine the light on excellence and recognise the advisers, providers and investment managers that offer the highest level of innovation, performance and service to occupational pension schemes and their members, and have done the most to improve this over the past year.

      • Date: 14 Sep 2021
      • London
      View all events
      Follow our Professional Pension Events

      Sign up to receive email alerts about our events

      Sign up

  • Whitepapers
    • How DC schemes can gain exposure to different asset classes in a low-return environment

      So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap,' ‘pension freedoms' or consultations around ‘value for money', says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).

      Download
      Pension freedoms three years on

      In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.

      Download
      Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Spotlights
  • Digital Edition
Professional Pensions
Professional Pensions
Sponsored by T. Rowe Price
  • Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
  •  

    You are currently accessing ProfessionalPensions via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0) 1858 438800

    Email: [email protected]

    • Sign in
  • Industry

Why we must shine a brighter light on the gender pension gap

Stewart: Women continue to face financial challenges
Stewart: Women continue to face financial challenges
  • Catherine Stewart
  • 08 March 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
0 Comments

Scottish Widows' Catherine Stewart says women have come a long way, but more action is needed to close the gender pensions gap.

We live in an age where great progress has been made to help forge a more gender-balanced world, and International Women's Day is encouraging us all to play our part to ‘better the balance, better the world'.

While we can feel the change in many ways both in and outside of the workplace, sadly, we're not seeing the same level of improvement when it comes to closing the gender pension gap.

Related articles

  • Lifetime allowance freeze creates 'bizarre disincentive'
  • The threats and opportunities of booming cyber crime
  • Six areas of focus will help savers' outcomes
  • Value for money in pensions admin: Learning from the world's top schemes

Nearly half of all women are still not saving enough for retirement and younger women are far less likely than men of the same age to be saving enough (or anything at all) for later life. According to a Scottish Widows report published last year, more than half (57%) of women aged 22-29 have experienced financial hardship, with an unexpected bill of just £270 being enough to put this group into debt. The fear of financial hardship is clearly discouraging many from saving into pensions, leaving those most financially vulnerable at an even greater disadvantage.

There are, unfortunately, a number of financial challenges that women continue to face - all contributing to the fact that, women are less prepared for retirement than men.

Interrupted pension contributions

Maternity leave, reduced working hours, childcare costs or caring for an elderly relative can all contribute to the gender pension gap, by holding back women's earnings potential and leading to intermittent retirement saving in those all-important early years. Many women may not consider the long-term impact of ceasing pension contributions, or that they, or their partner, can contribute to a personal pension plan whether in employment or not. Paying a little extra before, during or after taking extended leave can go some way to mitigating the impact to retirement savings.

Not knowing the numbers

Not claiming child benefit can have a negative impact on someone's state pension as well. To receive a full state pension, an individual needs 35 years of national insurance (NI) contributions or credits. Child benefit counts as a NI credit, so claiming this when on parental leave can mitigate the break in NI contributions and the negative impact on state pension entitlement.

Sometimes, the amount of support people receive from the state may be less than they think. With further state pension age rises for women planned for 2020 and 2026, and the average weekly state pension received by women at just 82% of the average for men, it's even more important for women to have a well-planned retirement savings plan. 

Divorce and separation

Divorce and separation is a key risk for women who often have lower earnings and financial assets than their partners. A pension is often the second largest asset a couple has after a property, but our research reveals that seven in ten couples didn't consider pensions during divorce proceedings.

A more flexible approach to pensions

Encouragingly, auto-enrolment has brought more savers into the fold and this will have had a positive impact on the number of women saving adequately for retirement - it's at its highest since the Scottish Widows' women and retirement research began in 2004. In addition, the number of women not saving for retirement at all is at a record low.

But, we believe a new, more flexible approach to pensions is needed. We are calling for savers to have limited, penalty-free access to their pension savings throughout their lives. This would help people to cope with unplanned expenses and overcome a key objection to pension saving - what if I need that money? It would also make pensions more relevant, helping financial resilience in the here and now, not just in later life. This is something we'll continue to push for within the industry.

Time for change

International Women's Day celebrates the social, economic, cultural and political achievements of women, while also marking a call to action for accelerating gender balance. The organisation behind the campaign says ‘women have come a long way, but there's still more to be achieved'. The same can be said when looking at the challenges faced by women saving for a better retirement.

Catherine Stewart is head of individual pension propositions at Scottish Widows

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Industry
  • Scottish Widows
  • Catherine Stewart
  • diversity
  • HR
  • FD

More on Industry

Candidates can typically now consider more than one opportunity to ensure that they move for the right career opportunity
Sammons Salary Survey 2020: Confidence over career moves growing

As Sammons Pensions Recruitment publishes its 2020 Salary Survey, Sarah Bergin-McCarthy finds the current climate is not hampering regrowth.

  • Industry
  • 05 March 2021
Sier: You can’t manage what you don’t measure
Chris Sier fintech ClearGlass Analytics closes £2.6m seed funding round

ClearGlass Analytics has closed a £2.6m funding round as it delivers greater accountability to pension funds and the wider asset management market.

  • Industry
  • 05 March 2021
Life and pensions new business sales at Royal London were 20% lower in 2020 due to the impact of national lockdowns on the UK economy.
Royal London pension sales feel Covid bite

Life and pensions new business sales at Royal London were 20% lower in 2020 due to the impact of national lockdowns on the UK economy.

  • Industry
  • 05 March 2021
The best of PP's news from 1-5 March, 2021.
Five stories you may have missed this week

This week’s top stories included the chancellor’s freezing of the lifetime allowance in the Spring Budget, along with the industry’s unfavourable response to the move.

  • Industry
  • 05 March 2021
The restructuring division of KPMG, including its employer covenant team, will be acquired by H.I.G Europe.
KPMG employer covenant team acquired by private equity firm H.I.G Europe

The restructuring division of KPMG, including its employer covenant team, will be acquired by H.I.G Europe.

  • Industry
  • 04 March 2021
blog comments powered by Disqus
Back to Top

Most read

Spring Budget 2021: Lifetime allowance freeze, flat rate of tax relief and AE review among expectations
Spring Budget 2021: Lifetime allowance freeze, flat rate of tax relief and AE review among expectations
Spring Budget 2021: Lifetime allowance frozen until 2026
Spring Budget 2021: Lifetime allowance frozen until 2026
KPMG employer covenant team acquired by private equity firm H.I.G Europe
KPMG employer covenant team acquired by private equity firm H.I.G Europe
DB funding - February 2021: Gilts-plus deficit eliminated, says PwC
DB funding - February 2021: Gilts-plus deficit eliminated, says PwC
Spring Budget 2021: Government to consult again on DC investments and charge cap barriers
Spring Budget 2021: Government to consult again on DC investments and charge cap barriers
Trustpilot

 

  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • YouTube

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading