End gender pensions gap

Ceri Wright, a Unite delegate from the finance sector, spoke today (September 16) on the gender pension gap.

 
According to a report from Prudential, women can expect an average retirement income of ÂŁ14,300 per annum — this is ÂŁ4,800 or 25 per cent less than the ÂŁ19,100 expected by men.

 
“Congress, we rightly condemn and challenge the gender pay gap,” Ceri said. “And this motion highlights the need to challenge the gender pensions gap too.”

 
Women are failing to receive the same pensions as men as a result of low pay, part-time working, and time off for childcare and other caring.

 
“It is compounded by the fact that many women don’t get a full state pension having relied on their husband’s contributions and are frequently forced to rely on their husband’s pension income in retirement,” Ceri explained.

 
Austerity has also meant that many of those who are low paid are on zero-hours contracts, treated as self-employed and with no employer National Insurance contributions.

 
At present at least 25 per cent of people are not saving for retirement because they can’t afford to pay into a pension scheme and women are saving 38 per cent less than men.

 
“Congress, pension poverty is real issue for women,” Ceri said. “Many don’t have a pension of their own and three quarters of women pensioners live on or just below the poverty line.”

 
Ceri went on to talk about two issues that need to be addressed urgently.

 
“Firstly, auto-enrolment – this compels employers to offer a pension with a minimum level of employer contributions,” she said.

 
“However, employers are not obliged to auto-enrol workers earning less than £10,000 a year – though workers earning over £5,800 can opt-in,” she added.

 
The last government pushed up that threshold to ÂŁ10,000 which disproportionately affects the many women who work part-time.

 
“We need auto-enrolment above the £5,800 threshold and employer contributions on all earnings,” said Ceri.

 
“We also need to reverse the ratio between employer and employee contributions,” she added.

 
The second point Ceri spoke about was state pensions.

 
“The government is bringing in the new single state pension for those reaching state pension age after April 2016,” she said.

 
This will require 35 years of contributions to get a full benefit of around ÂŁ150 a week.

 
“This also disadvantages women who are less likely to accrue those qualifying years,” said Ceri.

 
Ceri finished by stressing what is needed to end pension inequality.

 
“We need higher pensions and a reduction in the years of contribution required,” she said.

 
Calling on Congress to support the motion, Ceri called for an end to the inequality in pensions and the gender pensions gap.