On the go: Every industry in the UK has a gender pensions gap, including those dominated by female workers, according to new research. Legal & General also confirmed that women can expect a pension pot that is half the size of men’s pots, regardless of their industry.
The research analysed more than 4.5mn savers. It found the gender pensions gap varies from 59 per cent in the healthcare industry to 13 per cent in courier services.
The healthcare (59 per cent), construction (51 per cent) and real estate/property development (48 per cent) sectors were identified as having the largest gender pension gaps.
There were also significant gaps in pharmaceutical (46 per cent), aerospace, defence and government services (46 per cent), and senior care (45 per cent) sectors. Of these six sectors, three are key industries for female employment – healthcare, pharmaceuticals, and senior care.
Regarding its own gender pensions gap, L&G said there is a 60 per cent gap for L&G retirees at the point of retirement, with an average gap of 32 per cent for current savers.
Legal & General co-head of defined contribution Rita Butler-Jones said the disparity “demonstrates the extent of the crisis facing many women as they approach retirement, even in careers where they make up the majority of the workforce”.
She added: “There is therefore a real need for providers, schemes and government to work together to understand and tackle both the sector-specific and structural barriers which women face in saving for their future.”
The cause of the gender pensions gap is multifaceted, but ranges from women holding fewer senior positions and being paid less — resulting in lower pension contributions — to the fact they are more likely to take career breaks due to caring responsibilities, L&G acknowledged.
According to the research, of those that have taken a career break, 38 per cent did not know the financial impact that it had had on their pension contributions.
Another potential driver is a significant gender confidence gap when it comes to managing pension pots, L&G said.
More than a quarter (28 per cent) of women said they had confidence in their ability to make decisions about their pension, compared with almost half (48 per cent) of men.
This lack of confidence extends further to other financial decisions, the provider said, with women less likely than men to feel confident managing their investments — 22 per cent of women versus 41 per cent of men — and their savings — 56 per cent of women versus 67 per cent of men.
