Blog
The real root of women's inequality in retirement
Research has revealed that Scotland has the second-worst gender pensions gap in the UK. A report by Prudential has found that women in Scotland can expect to receive more than one-third less than men when they retire, with an average annual income of £10,029 compared with £17,539 for their male counterparts.
The media has largely focused on the fact that the gender pensions gap has narrowed, although this is because men’s income has fallen as opposed to an increase in the amount women are saving.
Vince Smith-Hughes, Prudential’s retirement income expert, has advised ‘practical steps that women can take to improve their retirement income’ which includes maintaining pensions contributions during career breaks and making voluntary National Insurance contributions after returning to work.
However, such ‘practical steps’ are simply not an option for many women and do not address the real root of women’s inequality in retirement. Women are less likely to be in work and have access to an occupational pension scheme and when they are in work, they experience lower rates of pay and so are less able to contribute a pension. Research by Scottish Widows found that 71 per cent of women (compared with 60 per cent of men) cannot afford to save long-term while 23 per cent of women (compared with 17 per cent of men) are saving nothing for their retirement.
Women earn less over their lifetimes, have less savings, and less of a pension compared with men of equivalent age. As primary carers, many women have taken career breaks that have resulted in vast holes in their pension pots.
At a time when women’s incomes are being squeezed by not only the UK Government’s extensive public sector spending cuts but also the rising costs of childcare, food and energy bills, it is not surprising that many women are unable to save for their retirement.
Research reveals the majority of women can't afford to save for retirement
Government U-turn on women's pension age but millions still to lose out
Government pushes ahead with plans to raise state pension age for women
Close the Gap newsround (21)
This week's newsround includes articles on occupational segregation, women and work and gender stereotyping.
NEWS - SCOTLAND
BBC News
Female unemployment: Why has it been rising rapidly?
Scotland on Sunday
Lady Susan Rice appointed president of Scottish Council for Development and Industry
NEWS - UK
The Guardian
First woman to command Royal Navy frigate takes helm
Child care costs: how the UK compares with the world
The Independent
Women directors are out of the picture at Cannes
The Telegraph
eFinancial Careers survey shows City gender pay gap hits 21%
BBC News
Ruchi Sanghvi: Facebook's pioneer woman
More failing to save for pension, says Scottish Widows
Belfast Telgraph
Rise in male childcare students
ASLEF
Why are train drivers male and white? Union asks.
EVENTS
Chartered Institute for IT-BSCWomen
BCSWomen Scotland will have their first meeting in Scotland on 27th June in the IBM office in St Andrew Square, Edinburgh. The event will start between 6 and 6.30pm, and go on until about 8.30pm. Further details available at bcswomenscotland.wordpress.com
CONSULTATIONS - UK Government
Equality Act 2010: consultation on employer liability for harassment of employees by third parties
Equality Act 2010: consultation on repeal of two enforcement provisions
Close the Gap concerned about dilution of equalities law
Close the Gap is concerned about the UK Government’s announcement of measures that may dilute existing equalities legislation. ‘Red Tape Challenge’ was a UK Government web-based consultation on current legislation, carried out with the specific aim of reducing so-called bureaucracy, and which attracted comments from the general public as well as from employers, and equalities organisations. Following this exercise, the Home Secretary and Minister for Women and Equalities, Theresa May, announced yesterday that the government will review the ‘effectiveness’ of the public sector equality duty, and is minded to remove some existing legal protections for employers, and to reduce the role of employment tribunals.
The review, which will take a form that is yet to be announced, will cover the general public sector equality duty and the specific duty. This will have implications for Scotland, as the general duty covers Scotland and Wales as well as England. This review follows hot on the heels of the introduction of the general duty; the specific duties have not yet been implemented in Scotland.
May also announced a proposal to scrap equal pay questionnaires which provide individuals with information that can be used to take forward equal pay grievances and tribunal cases. She also announced the Government’s intention to remove the ability of tribunals to make recommendations to employers about changes to their employment practices. This would remove one of the only measures that tribunals have to address discrimination that is embedded, usually unwittingly, within the pay systems of employers.
There are enormous concerns about the impact of public sector spending cuts on the position of women in the labour market. The number of unemployed women is at a 25 year high with this number predicted as budgets reduce in the female-dominated public sector. There has also been a rise in pregnancy discrimination, cuts to flexible working, and an increase in the number women under-employed. Analysis by the House of Commons library researchers revealed that women will pay for more than 70 per cent of the £18bn cuts to social security and welfare set out in the 2010 emergency budget. The Women’s Budget Group has analysed cuts to services, and has determined that the withdrawal in public services amounts to 20 per cent of the income of single parents.
The public sector equality duty requires public sector employers to work proactively on the complex causes of the pay gap. Other legal remedies provide redress when things go wrong. Close the Gap will be responding to the consultation to remind the UK Government of the benefits of the Equality Act: public bodies working to provide the best quality of employment to employees, and clear expectations for employers and employees on how problems will be resolved if they arise.
Close the Gap newsround (20)
This week's newsround includes articles on equal pay, the underrepresentation of women in IT and flexible working.
NEWS - SCOTLAND
Herald
Science chief in warning on lack of women
The Scotsman
Equal pay case ‘could cost Network Rail millions’
NEWS - UK
The Belfast Telegraph
Number forced to work part-time in Northern Ireland doubles
Fawcett Society
Government could have done more to consider impact of cuts
Government Equality Office
Equality reforms cut burden on business
The Independent
Mary Ann Sieghart: Get new fathers to stay at home with the baby and we all gain
Women directors are out of the picture at Cannes
ITN
Network Rail facing equal pay case
London Evening Standard
Women rail staff mind the £4,500 pay gap, says union
Scottish Trade Union Congress
STUC condemns attack on equality
SourceWire news
The First UK Guide to Finance for Women in Business
Wales Online
When there are so many woman going into medicine, why are there so few female surgeons?
What the experts say about the lack of female surgeons
Women in Technology
Managers 'must be held accountable' for gender equality
Gender gap for women in technology evident worldwide
Touch Stone (Blog)
Women, part-time work, and underemployment
Institute of Public Policy Research (Blog)
Government extends welcome hand to a ‘family-friendly economy’
CONSULTATIONS - UK Government
Equality Act 2010: consultation on employer liability for harassment of employees by third parties
Equality Act 2010: consultation on repeal of two enforcement provisions
Close the Gap newsround (19)
This week's newsround includes articles on the pay gap in media professions and a summit on women's employment Scotland.
NEWS - SCOTLAND
Scottish Government
First Minister Announces Women's Job Summit
NEWS - UK
The Guardian
TV production survey points towards gender pay gap
Burning issues for female firefighters
The Telegraph
FOI request reveals BBC pays high ranking men 10 per cent more than women
People Management
PwC, BT and Diageo rewarded for gender diversity progress
The Times
Wales online
Women still hit hardest by job losses with 4,000 more unemployed
City A.M.
Female accountants see gender as barrier
Accountancy Age