The gender pensions gap will take at least 20 years to close unless "decisive" action is taken, according to the latest Women and Retirement Report from Scottish Widows, which showed that the gender pensions gap remains at a "stubborn" 30 per cent.

The report showed that progress has been made in closing the gender pension gap, driven by policy implementations, an increase in the number of women in employment, a decrease in the gender wage gap and a gradual shift in attitudes towards women’s roles.

In particular, Scottish Widows noted that auto-enrolment in 2012 effectively doubled pension participation rates of eligible female employees, with the gender gap in pension participation having effectively disappeared.

However, it estimated that it would take another 20 years to close the gap at the current pace of change, as the current average gap in pension savings at retirement showed women trailing men by about £100,000.

Scottish Widows managing director, Jackie Leiper, said: “Progress has been made on the gender pension gap over the last two decades thanks to game-changing interventions like auto-enrolment and improving equality on women’s pay and role in society.

"But we are still a long way from where we need to be. Without drastic action, the gender gap will take another 20 years to close, and there is a very real risk that we won’t see pension parity for many generations to come."

According to the research, the average woman is on track to only receive £12,000 per year of total income in today’s money during retirement, after paying for income tax and any expected housing expenses, compared to £17,000 for the average man.

Scottish Widows emphasised that this is not only a "considerable" difference, but also leaves women falling short of meeting the Pensions and Lifetime Savings Association (PLSA) minimum retirement standards of £14,400 for a single person.

In addition to this, more than two fifths (42 per cent) of women are currently on track to face poverty in retirement, compared to just over a third (35 per cent) of men, and were less likely to attain a comfortable retirement lifestyle (28 per cent compared to 35 per cent of men).

Women were also more likely to have no private pension savings, as just over half (56 per cent) of women are on track to receive retirement income from a private pension, compared to 68 per cent of men.

Whilst "significant" progress was made over the past two decades, Scottish Widows warned that this progress could be at risk of slipping if government action does not continue, stressing the need for "urgent" action to address these discrepancies.

In particular, the group argued that the government should look to implement the 2017 Auto-Enrolment Review recommendations, which would bring more women into the scope of the initative.

In addition to this, it argued that reforms are needed to the way in which annuities are presented to the public by distributors and to the prominence of pension pots in divorce
discussions.

Beyond the pensions system, it said that there needs to be adequate provision of childcare to allow women to fulfil their ambitions in the workplace, and not only in those wealthier local authorities which have the necessary resources.

“Extending auto-enrolment to support the higher proportion of women who are self-employed, or in part-time work is vital, as is the establishment of a Lifetime Savings Commission," Leiper said.

"Urgent action must be taken and we must empower more women to take control of their money through life and into retirement, with education, support, and innovative ways to engage with their money.

“The last 20 years has seen a move towards gender parity on pensions – but there is still more work to do to ensure more women can live and enjoy the lives they want in retirement.”

An opportunity for change may lie ahead, as Scottish Widows head of policy, pensions and investments, Pete Glancy, suggested that the gender pension gap could be a key feature of phase two of the government's Pension Review.

"This is the opportunity for all stakeholders who genuinely believe in gender pensions equality to contribute to that review, making the case for the reforms that will make a difference," he said.

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