The gender pension gap currently sits at 40.5% for 2020–21, almost unchanged from the initial estimate made half a decade ago, and represents an annual shortfall of £7,100 on average.
According to the most recent data, current government measures are failing to close the gap despite greater attention to it. As a result, Prospect has issued a warning about a “ticking gender pension time bomb” if drastic measures are not done to close the disparity.
The data was released by Prospect in its most recent yearly Gender Pension Gap report. This year, there has been improvement in reporting. Under pressure from Prospect the government has agreed to look at creating a formal definition of the gender pension gap, and also at the feasibility of assessing the gap centrally. This would make concentrating on solutions to the gap much simpler.
Prospect senior deputy general secretary Sue Ferns said: “This report shows that the gender pension gap remains extremely high.
“Prospect’s number one ask of government has been for them to produce an official definition of the gender pension gap and to report on it centrally. Progress has been made on that but we now need warm words to be matched by concrete action.
“Things are moving far too slowly. We are currently condemning generations of women to significant financial inequality in retirement. It is simply not good enough.”