The Pensions Equity Group (PEG) has published a guide to help employers identify and reduce the gender pension gap, with statistics and advice on how to improve existing disparity between men’s and women’s pensions savings.

Mind the Gap: Reducing the gender pension gap was published yesterday (11 June) and aims to highlight, and combat, the continuing difference between pensions provisions for men and women.

Women are more likely to participate in pensions than men, according to the Office for National Statistics. But because of factors such as lower average pay and a greater likelihood of gaps in employment, due to caring responsibilities, women on average retire with half the pension of a man, the guide states.

In 2021, the gap between annual savings for women and men was £500 a year in the private sector and more than £2,000 in the public sector – resulting in reduced likelihood of getting beyond – or even reaching – the ‘minimum standard of living’ set out in the Pensions and Lifetime Savings Association Retirement Living Standards report.

The guide outlines ways in which employers can address – and potentially reduce – the pensions gap between genders, with four key points: understanding the firm’s own gender pensions gap; going beyond statutory minimums; raising awareness among employees; making meaning benefit and policy changes.

Commenting on the launch of the guide, The Pensions Regulator (TPR) interim director of analysis and advice, Louise Davey, said: “The Pension Equity Group’s gender pension gap guide is a welcome addition to work to build collective knowledge around why pension inequalities occur.”

"It also complements our desire to work with others to find ways to reduce pension inequalities so all savers can get the maximum value possible from their pension.”

TPR also highlighted its own separate, but related, set of guidance aimed at helping employers improve equality, diversity and inclusion (EDI) on their pension schemes’ boards.

Davey added: “Employers have a key role in ensuring EDI is considered by their scheme and a duty to support employees nominated to their scheme’s governing body.”

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