Gender pay gap continues after retirement

23 April 2018

Gender Pay Gap Continues New research from the consumer group Which? shows that men receive up to £29,000 more than women in state pension, revealing that the pay gap continues after retirement. A retired man typically receives £154 a week, compared to £126 a week for women, according to the research. The figures, which cover the three months to August 2017, show women receive on average 81.9 percent of what men get, an improvement from 79.7 percent in the same period of 2015 and 77.7 percent in 2013.

"Many pensioners will be shocked by the differences in average payouts to men and women and those qualifying under the old and new systems. Some pay gaps will close eventually, but not soon enough for some,"  said Harry Rose, editor of Which? Money.

The difference is mainly the result of millions of people still receiving add-ons to their basic state pension that they built up during the years they worked, such as the state second pension which was based on earnings.

Commenting on the figures, the former pensions minister Sir Steve Webb, said that it may take another 10 years for the gap to be eliminated.

"The new state pension has been designed to treat men and women equally. Someone with 35 full years in the new system will get exactly the same pension, whether they are male or female,"  he said.

"This should not detract from the radical change which the new system brings, which will stop women being second-class citizens when it comes to state pensions."

The Department for Work and Pensions (DWP) said:

"Around 650,000 women reaching state pension age in the first 10 years will receive an average of £8 per week (in 2015/16 earnings terms) more, due to the new state pension valuation of their National Insurance record."

"The statistics currently available on the new state pension are not yet sufficiently representative to draw robust comparisons between the old system and the new one."

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