TUC Reports £7,600 Annual Gender Pension Gap in UK

Significant concerns have been raised about the rising state pension age in the UK, which is set to increase to 67 between 2026 and 2028 and further to 68 between 2044 and 2046. Experts warn that this change disproportionately affects those on the lowest incomes, particularly people in physically demanding jobs or with long-term health conditions, as they may be forced onto less generous benefits like Universal Credit, which provides less than half the annual amount of the state pension. Additionally, research highlights a persistent gender pension gap where retired women lose an average of £7,600 annually compared to men, effectively going more than four months each year without pension income. The income gap between men and women in retirement stands at 36.5%, more than double the gender pay gap, exacerbated by women’s lower average pay and time taken off work for caring responsibilities. In response, the UK government has revived the Pension Commission to address the gender pension gap and examine barriers to equal retirement incomes, aiming to ensure dignity and security in retirement for all. Experts emphasize that uncertainty around pension changes also harms individuals’ ability to plan for retirement, potentially causing financial distress among vulnerable groups.