Recommendation 2

Improving pension outcomes requires an understanding of the systemic challenges. Of the groups at risk, we took most evidence on the position of women, who make up two-thirds (67%) of pensioners in poverty. Some positive steps have been taken to improve their pension outcomes: in particular, through the introduction of the new State Pension. However, there remain ‘blind spots’ in policy making, which result in the reality of women’s lives being insufficiently reflected in the design of the pensions system. Unpaid care work is often not credited; women in low-paid work, on short-term contracts, or in non-traditional employment, often fall out of the scope of auto-enrolment; and while pensions can be shared on divorce, this often does not happen in practice and does not apply to cohabitees. The previous Government’s introduction of regular gender pensions gap reporting was an important first step in focusing on factors affecting retirement outcomes for women. (Conclusion, Paragraph 28)