Gender pensions gap effectively means retired women go 4 months a year without a pension – TUC

Today (Wednesday) is 'gender pensions gap day’ when the average retired woman would effectively stop receiving a pension if it was paid out at the same rate as men, says the TUC. 

Prospect union has calculated that the income gap between men and women in retirement today is 32.9% - more than double the gender pay gap, and the equivalent of the average retired woman going for the four remaining months of the year without a pension.

The TUC is today calling on the Pensions Commission – established by the government to make recommendations on the pension system – to set out a “bold plan” to close this gap.

This should include measures to make workplace pensions work better for people in low paid and part-time jobs, and deliver a State Pension boost for those with unpaid caring responsibilities.

Reasons for the gap 

The union body says that the main drivers of the gender pensions income gap are: 

Pensions Commission

The Pension Commission was established by the government last year to make recommendations on the long-term adequacy, fairness and sustainability of the pension system. Its final report is expected early next year.

The TUC says the commission's interim report – published in May – exposes how women, disabled people, and black and ethnic minority people are at considerably higher risk of not receiving a decent income in retirement. 

The report describes a system in which, although participation rates in workplace pensions have doubled due to auto-enrolment, up to 19 million working-age people are not on track for an adequate retirement income.

The TUC says the Pensions Commission provides a much-needed opportunity to close the gender pensions gap and ensure that everyone receives a decent retirement income.

The TUC has highlighted three key solutions for narrowing the gender pensions gap for women retiring in the future: 

TUC General Secretary Paul Nowak said: 

“Everyone deserves dignity and security in retirement. But right now, too many retired women have been left without enough to get by – often because they spent time raising children and caring for loved ones through their working lives.

“And many women in work don't get any sort of workplace pension at all because they don’t earn enough – frequently because of working part-time. 

“The workplace pension system needs reform so it works better for people on low pay and part-time workers. And women with caring responsibilities should build up extra state pension to recognise the value of that work.

“The Pensions Commission's interim report exposed how and why so many women are at risk of poverty in retirement. Now the Commission must come up with a bold plan to close the gender pensions gap for good.

“The government must grasp this opportunity to make sure everyone receives the decent retirement income that all workers need and deserve."

Sue Ferns OBE, Senior Deputy General Secretary of Prospect, said:

“The continuing fall in the Gender Pension Gap is positive but we are still a very long way from achieving parity, with women earning £7,200 a year less than men in retirement.

“It is of particular concern that the gaps in some public sector pension schemes are even worse than the average.

“We cannot become complacent that things will continue to improve. Trade unions will continue fight until there is true equality both in work and retirement.”

Women’s Budget Group Director, Dr Daniella Jenkins said:

"There is a common misconception that the gender pension gap is a relic of previous generational gender inequalities in the labour market, but it is actually baked into the systems that meet every generation entering the world of paid work, including young women now. 

"Tackling the unequal responsibilities for unpaid care work women are pushed into over their lifetimes is key to closing the gender pension gap long-term. But so too is reform to what is a dysfunctional pensions system.

"I echo the TUC in their calls for the Pensions Commission to be bold in their recommendations for closing the gender pension gap. Women of every generation are depending on it."

ENDS

Notes to editors:

- The TUC's response to the Pensions Commission's interim report can be read here: https://www.tuc.org.uk/research-analysis/reports/pensions-2050-evidence-and-future-priorities 

- Prospect’s report on the gender pension gap can be read here: https://prospect.org.uk/article/what-is-the-gender-pension-gap/

-The Pension Commission’s interim report can be read here: https://www.gov.uk/government/publications/pensions-2050-evidence-and-future-priorities-interim-report

Media credentials for Congress 2026: This year's Congress will be held in the Brighton Centre (Kings Road, Brighton BN1 2GR) from Sunday 13 September to Wednesday 16 September. 

- About the TUC: The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together the 5.3 million working people who make up our 47 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.