State pension ‘is reducing gender retirement gap’ – changes heralded for women retirees
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The state pension is split into two tiers, and what a person receives will be dependent on when they reach retirement age. The basic state pension is the older scheme, available to men born before April 6, 1951 and women born before April 6, 1953.
While the new state pension is intended for men born on or after April 6, 1951 and women born on or after April 6, 1953.
Each year, the state pension increases, providing a welcome boost to pensioners’ income.
However, individuals will be receiving different amounts, usually based on their National Insurance contributions.
Canada Life has shared data with Express.co.uk showing average state pension payments, the differences for men and women, as well as the disparities between the basic and new state pension.
For men who reached state pension age before April 2016, the average state pension is £172.64 per week.
For women on the older scheme, however, the average state pension payment per week is £145.87.
When it comes to the new state pension for women, there has been an improvement.
Now, the average new state pension for women is £164.74 weekly.
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However, for men, the average payment has slightly dropped, and is now recorded at £170.50 per week.
The data illustrates the move towards a closure of a gender pension gap for women over time.
Andrew Tully, technical director at Canada Life, told Express.co.uk this was a good improvement to note.
He said: “It is positive to see the new state pension is reducing the gender retirement gap.
“However women are still facing retirement with substantially less saved in their pensions than men.
“There is much work to be done to help boost women’s retirement incomes.”
There remains disparity, though, between the basic and new state pension, with some individuals asserting the two tier scheme should be scrapped.
Jan Shortt, General Secretary of the NPC, previously told Express.co.uk: “It seems ridiculous that the UK, which already has one of the lowest state pensions in the developed world, should discriminate between our oldest pensioners and those who retired more recently. Surely all pensioners ought to be treated equally?”
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The Department for Work and Pensions (DWP) has heralded the idea of automatic enrolment as it relates to women closing the gender gap.
The Government states this process has helped millions more women save into a pension.
A spokesperson added to Express.co.uk: “Participation among eligible women in the private sector has risen from 40 percent in 2012 to 86 percent in 2020 – equal to that of men.
“Our plans to remove the Lower Earnings Limit for contributions and to reduce the eligible age of being automatically enrolled to 18 in the mid-2020s will enable even more women to save more and start saving earlier.”
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