Women receive just 32p for every £1 of income received by men in a pensioner couple and almost a quarter of single female pensioners live in poverty according to a new report released by Age Concern and the Fawcett Society.

The new evidence reveals that the pay gap, which women suffer during their working lives, becomes a vast pension gap in later life. The problem is worsened by the outdated basic state pension system which is littered with obstacles for women trying to build up a pension in their own right.

The current system leaves many women facing a retirement in poverty and relying on state benefits or income from their partner.

The Government’s pensions green paper, which offered a once-in-a-generation opportunity for pension reform, recognises that the system is not working for women but fails to offer any solutions.

Age Concern and the Fawcett Society are putting forward a programme of pension reforms that they believe must be a top priority for the new pensions minister. The two organisations warn that unless there is serious policy change, future women pensioners will be no better off than their mothers’ or grandmothers’ generation.

Katherine Rake, Director of the Fawcett Society, who is one of the country’s leading experts on women’s pensions, said:

“Women experience a pay gap throughout their working lives and the last straw is a pension gap in retirement. The state pension is particularly important for women because of lower pay, broken employment records and less access to occupational pensions.”

“However the current state pension system is not working for women as it is based on the old assumption of men as the breadwinners and women as stay-at-home carers.”

Gordon Lishman, Director-General of Age Concern England said:

“Pensioner poverty is a huge challenge for the Government and central to this must be the needs of women pensioners. Nearly a quarter of single female pensioners already live in poverty and twice as many women as men rely on the means-tested Minimum Income Guarantee.”

“This is unacceptable and must be urgently addressed by the Government as part of its pension reform. Unless there is serious policy change, the future looks no brighter for tomorrow’s pensioners than today’s.”

Age Concern and the Fawcett Society have listened to women across the country to develop their pensions programme which includes action to:

• Make all state pension contributions count.
• Include more low paid women and men in the National Insurance System.
• Introduce a better and more flexible system of state pension credits for those who care for children or older people.
• Guarantee that every woman, whether in employment, caring or unable to work for reasons such as a disability, receives a decent state pension that covers basic costs and is free of a means-test.
• Close the advice gap with better financial education and information.
• Better opportunities for women to build-up higher value company and personal pensions.
• Consult on the benefits of unisex annuities.