State pension gender gap narrows following 2016 changes

The state pension gender imbalance has been reduced from almost £28 per week to around £7 since the introduction of the new state pension, according to LCP analysis of Department for Work and Pensions figures.

The research highlighted that under the pre-2016 state pension system the average man would receive £163.76 per week and the average woman would receive £136.07, compared to £160.09 and £152.90 for men and women respectively under the new system.

Analysing the figures, LCP pointed out that the features of the new state pension designed to spur this equalisation were basing the system around a ‘flat rate’, rather than an earnings-related element that favoured those who earned more, and the new system treated periods working as a carer more generously.

The pensions consultancy added that, as the new state pension system had been introduced with no net overall cost, higher average pensions for women have in part been financed by lower average pensions for men.

LCP partner, Steve Webb, said: “Whilst any gender difference in pensions is unwelcome, it is very good to see that the 2016 reforms to the state pension are starting to make a real difference to women’s pensions.

“The fall in the state pension gender gap from around £28 per week to around £7 per week is very striking, and reflects the way the new system was designed.

"A year caring for a young child or an elderly relative now generates just as much state pension as a year running a FTSE 100 company, and this change has contributed significantly to reducing the gender pension gap”.

The new state pension was introduced four years ago, though analysis released by Just Group in May found that more than half (56 per cent) of people who reached state pension age since April 2016 do not receive the full amount of the new state pension.

    Share Story:

Recent Stories


Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth.

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video interviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today. Please click here for an edited write-up of the video

Multi asset credit
Pensions Age editor, Laura Blows, discusses multi asset credit with Royal London Asset Management senior fund manager, Khuram Sharih
Pensions Age podcast: buy-outs and buy-ins for member and employer nominated trustees
Pitfalls and good practice when approaching insurers with Pensions Age editor, Laura Blows, Martin Parker (Just Group) and Akash Rooprai (ITS)