Source · Select Committees · Work and Pensions Committee
Recommendation 2
2
Deferred
Women face systemic challenges and policy 'blind spots' in pension system design.
Conclusion
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)
Government Response Summary
The government acknowledges the issues around women's pension outcomes and the Gender Pensions Gap, stating it will continue to monitor and publish data every two years. It defers substantial consideration of improvements to the Pensions Commission, which will report its recommendations in 2027.
Government Response
Deferred
HM Government
Deferred
We remain committed to monitoring the Gender Pensions Gap (GPeG). This was recognised as important context within the Pensions Commission Terms of Reference which consider the factors that contribute to inequalities in retirement outcomes such as gender. The latest release on the GPeG was published in July showing the gap currently stands at 48% (www.gov.uk/government/statistics/gender-pensions-gap-in-private-pensions-2020-to-2022). The data is based on the ONS Wealth and Assets Survey which is made available approximately every 2 years. Therefore, we will continue to seek to monitor and publish every 2 years. We also publish information on pension participation by gender annually. The Pensions Commission’s terms of reference specifically include considerations of adequacy and how to improve retirement outcomes, especially for those on the lowest incomes and at the greatest risk of poverty in retirement and groups that are currently under-saving (www.gov.uk/government/publications/pensions-commission-terms-of-reference). The Commission has begun its work and will consider all of the evidence as part of its workplan, which will also include engagement with a broad range of stakeholders before preparing their recommendations for the Government to consider. The Commission is expected to submit its final report to the government in 2027.