Gender Pension Gap Leaves Retired Women £7,600 a Year Short

Published: 21 August ‘2025. The English Chronicle Desk. The English Chronicle Online.

Retired women in the United Kingdom face a stark disparity in income compared with their male counterparts, with union leaders warning that the gender pension gap effectively leaves women without a pension for nearly four months each year. According to the Trades Union Congress (TUC), the income shortfall in retirement stands at 36.5%, translating to an average deficit of approximately £7,600 annually.

This retirement income inequality is more than double the gender pay gap, which measures earnings differences during active employment and currently stands at 13.1%. Union leaders have highlighted that the gap means women effectively stop receiving a pension from 21 August each year when measured against men’s income, underscoring persistent systemic disparities.

Paul Nowak, General Secretary of the TUC, emphasized the urgency of addressing these inequities, stating: “Everyone deserves dignity and security in retirement, but too many retired women have been left without enough to get by. We must ensure that these inequalities are addressed for future generations.” He also called for the issue to be central to the inquiry recently launched by the government’s pensions commission, which is tasked with examining why retirement incomes have not met expectations despite reforms introduced over a decade ago, including mandatory auto-enrolment into occupational pension schemes.

The commission is expected to consult with unions, employer organisations, and pension experts to identify strategies to tackle these shortfalls. Annual research by the Prospect union, referenced in the TUC report, indicates that while the gender pension gap has been narrowing gradually over the years, progress remains slow. Between 2011–12 and 2022–23, the gap declined from 44.9% to 36.5%, driven by reductions in the gender pay gap, increased female employment rates, and state pension reforms. At the current rate of improvement, analysts warn that full parity may not be achieved until 2061.

The report underscores how income and gender inequality in retirement are significantly more pronounced than in the working population. Women often experience career interruptions for caregiving responsibilities, resulting in fewer pension contributions and slower accumulation of retirement savings. Even if participation in pension schemes were equalized, women’s average lower earnings mean they would still build smaller retirement funds than men. Presently, women earn on average 13.1% less per hour than men, a figure that rises to 18.9% among workers in their 50s.

Nowak concluded: “We now have an opportunity to ensure that all workers, including women, can receive the decent retirement income they deserve. Tackling the gender pension gap is not just about fairness—it is about securing financial dignity for millions of retired women across the UK.”