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State Pension Gender Gap Narrows In 2017

Men receive an average of £28,995.20 more than women from the state pension over a 20-year retirement, analysis shows.

Consumer watchdog Which? analysed data from the Department for Work and Pensions, and found the average man gets £27.88 more a week in the state pension than the average woman.

While the gap in pension income persists, the data suggests it has narrowed gradually in recent years.

In August 2013, the average payment received by women was 77.7% of that received by men. This had increased to 81.9% by August 2017.

The majority of retirees receive the state pension under its old rules, which are based on their national insurance contributions.

Steve Webb, director of policy at Royal London, argued that the difference will reduce as more individuals enter retirement under the new state pension, which was introduced in April 2016.

Webb said:

“Although these figures show a continuing gap between men and women in terms of state pension outcomes, this is largely because men who have built up larger entitlements under the old rules are having them honoured in the transition to the new system.

“But there should be no doubt the new state pension system has already reduced inequalities and will progressively bring male and female outcomes into line.

“Reversing decades of inequality takes time, but the new system marks a major step forward.”

For any help or advice with financial planning talk to RPD


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