women miss out on workplace pension contributions

Women are more than twice as likely as men to miss out on being automatically put into a workplace pension, according to new research.

The analysis shows that almost 1 in 9 women (10.9%) are in jobs where their employers do not have to enter them into a workplace pension, while the figure is less than 1 in 20 (4.3%) for men.

Employers are required by law to automatically enrol workers into a pension if they earn £10,000 a year or more, and to make contributions for them.

But 1.4 million women earn less than this threshold – potentially leaving many without an occupational pension.

The problem is highlighted in research just published by the TUC (Trades Union Congress).

Key statistics:

1 in 9 : the number of female employees in jobs where their employer doesn’t have to enter them into a workplace pension

29th May : the date when the average woman starts receiving their pension compared to an average man

40.5% or £7,100 : the income gap between men and women in retirement – more than twice the gender pay gap, which is currently 14.9%

Reporting the research, the TUC highlights key factors influencing the pensions gap and calls on the government to take action to tackle the divide:

Caring responsibilities: women are more likely to take time out of work or work part-time to look after children, making it harder to build up a workplace pension
Gender pay gap: the impact, over time, of women earning less than men due to the gender pay gap
Auto-enrolment: employers do not have to enrol low paid workers into a workplace pension – and these are more likely to be women.

State pension: historic differences in National Insurance contributions have left women with lower state pensions on average.

Read more about the research findings here. And tell us what you think: are you focused on getting your pension plans in place or think it’s something for tomorrow? Take part in our poll and see how many are like you.