research into gender pensions gaps in member countries, women over 65 take 26% less retirement income than their male counterparts. Its report echoes findings by pensions company Scottish Widows earlier this week that younger women could save £100,000 less into their pension than men over the course of their careers.The OECD found that the gap originated for a number of reasons, including lower participation in retirement savings plans between the ages of 25 and 44, and breaks in employment for parenting. It also found that the design of retirement savings plans played a role in savings gaps. Eligibility rules meant that in certain workplaces there could be differences in pension plan coverage, for example. It highlighted several ways in which the design of pension plans was not gender neutral and could therefore lead women to save less. These included:Women in OECD countries receive around a quarter less income than men from the pension system. According to the organisation’s
PensionsPensions Scheme Act hailed as 'landmark' Younger women at risk of £100,000 gender pensions gap
- Eligibility criteria based on working hours or earnings;
- Contributions or right accruals stopping during periods of maternity and parental leave;
- An emphasis on conservative investment strategies;
- Pension rights and assets not split automatically between ex-spouses on separation;
- Retirement benefits are not indexed; and
- Pay-out options with survivor benefits not being available.