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Rising poverty in women highlights gender gap

Baby boomer women are twice as likely as men of the same age to rely solely on their state pension, a Dunstan Thomas study has found.

There is a deep-seated gender bias at work that is leaving women more vulnerable to poverty in old age than men.

We found baby boomer women are twice as likely as their male counterparts to rely on their state pension alone. This may reflect the fact that until as late as the 1970s, women tended to be excluded from occupational schemes. Others chose not to join an employer scheme, perhaps thinking they would be able to rely on their husband’s pension savings in retirement.

Current auto-enrolment rules require annual earnings of £10,000 before your employer must offer to auto-enrol you, not counting the first £5,876 of annual earnings for pension contributions. This counts against women who choose to combine part-time work with caring duties.

The Institute of Fiscal Studies (IFS) recently published a report about the effects of the changes to the state pension age for women, which has increased from 60 to 63 initially. As a result, 15% of women aged between 60 and 62 are now in poverty. This is a rise of 6.4 percentage points.

Adrian Boulding is director of retirement strategy at Dunstan Thomas.

There is a deep-seated gender bias at work that is leaving women more vulnerable to poverty in old age than men.

We found baby boomer women are twice as likely as their male counterparts to rely on their state pension alone. This may reflect the fact that until as late as the 1970s, women tended to be excluded from occupational schemes. Others chose not to join an employer scheme, perhaps thinking they would be able to rely on their husband’s pension savings in retirement.

Current auto-enrolment rules require annual earnings of £10,000 before your employer must offer to auto-enrol you, not counting the first £5,876 of annual earnings for pension contributions. This counts against women who choose to combine part-time work with caring duties.

The Institute of Fiscal Studies (IFS) recently published a report about the effects of the changes to the state pension age for women, which has increased from 60 to 63 initially. As a result, 15% of women aged between 60 and 62 are now in poverty. This is a rise of 6.4 percentage points.

Adrian Boulding is director of retirement strategy at Dunstan Thomas.

Survey of 1,002 51-74-year-old UK residents conducted by Opinium in June 2017

Survey of 1,002 51-74-year-old UK residents conducted by Opinium in June 2017

Survey of 1,002 51-74-year-old UK residents conducted by Opinium in June 2017

Survey of 1,002 51-74-year-old UK residents conducted by Opinium in June 2017

Survey of 1,002 51-74-year-old UK residents conducted by Opinium in June 2017

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