'Intrinsic bias' in DC pension system drives wedge into savings disparity

'Stark gender disparity'

Hope William-Smith
clock • 4 min read

An “intrinsically biased” pension system, the gender pay gap, and the disadvantage caused to women’s savings by career breaks is continuing to cause “stark gender disparity” in retirement wealth, Barnett Waddingham says.

Findings from a study conducted by the consultancy compared the trends of 35,000 members in seven defined contribution schemes and found women have between 25% and 45% less in their pension pots at retirement than men. Barnett Waddingham found the gender pension gap begins to diverge "most clearly" after the age of 32, with men contributing up to £1,500 more into their pension each year than women. This comes despite men and women contributing the same percentage of their salary. Career breaks can lead women to have 10% less in their pension savings at retirement compared to a woman w...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Why documentation is king in the world of SSAS

Why documentation is king in the world of SSAS

'SSAS documentation - it isn't just best practice or a fiduciary requirement'

Caitlin Southall
clock 04 July 2025 • 4 min read
Steve Webb: Sceptical advisers should not give up on pensions dashboard

Steve Webb: Sceptical advisers should not give up on pensions dashboard

‘A big mistake to underestimate the impact it will have’

Jenna Brown
clock 03 July 2025 • 3 min read
What role can advisers play in closing the gender pension gap?

What role can advisers play in closing the gender pension gap?

Advisers are uniquely placed to influence the gender pension gap

Olivia Perry
clock 02 July 2025 • 7 min read