The gender pensions gap could be as much as £183,936, according to research published by equity release lender, more2life, and economics consultancy, Cebr.

The latest figures revealed a gender pension gap of £183,936 which is a sharp increase in the difference between men and women’s retirement income compared to more2life’s research last year, which suggested a pension gap of £157,263.

This is despite women contributing more of their income into pension pots (9.4%) than men (8.3%).

Taking the average earnings of each gender in 2020, the research suggested that men (£3,184) can contribute more towards their pension pot than women (£2,340) – leaving the average woman needing to work an additional 14.5 years to catch up.

more2life CEO, Dave Harris, commented: “Although women appear to be better at saving into their pension, they still face a retirement that is less comfortable and financially secure than their male counterparts.

“The stark difference in retirement incomes highlights the need to address the root causes of financial gender inequality and better support women as they make choices around how to use their assets both in the lead up to and during retirement.”

more2life suggested the increase of £26,673 since last year also highlights the impact of COVID-19 on the retirement savings of over-55s.

The findings, based on 1,016 responses from individuals over the age of 55, showed that 30% of women say their financial situation has worsened since the start of the pandemic, hampering their ability to fund or save for later life. This compared to a quarter of men (24%) who said the same.

Harris added: “Today’s figures are another alarming wake-up call about the gender disparity in retirement. It’s clear that the COVID-19 pandemic has caused significant disruption to many people’s retirement savings, but the impact has been most acutely felt among older women.

“As we begin to think about what a post-COVID society looks like, it’s vital that the industry and government does more to encourage women to engage with long-term financial planning.”

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