'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...

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