Phoenix Insights is urging the government to make it a requirement for companies to tell employees about any changes to their working hours and associated earnings that may have an impact on their ability to pay pension contributions.
Phoenix Insights has partnered with the Institute for Employment Studies (IES) on new research that includes key recommendations for the government on how to close the gender pension gap.
Phoenix Insights is calling for cross-departmental action to strengthen pension policy, assist working carers, broaden the availability of financial counselling, develop financial literacy, and promote flexible working.
According to a recent report from Phoenix Insights and IES, “Caught in a Gap: the role of government in enabling women to build better pensions,” changes in working patterns frequently have a negative impact on pay and workplace pensions, with 32 per cent of women reducing their working hours for an extended period of time.
It also shows that around 55 per cent of women would like to learn more about their workplace pension from their employer, and more frequent communication that goes above and beyond the legally required minimum is considered as vital to enhance pension involvement.
The new analysis reveals that government action to enhance pension policy, assist employers, and establish legislative protections that help retain women in the workforce throughout various life stages will help to raise saving capacity and close the gender pension gap.
Phoenix Insights director Catherine Foot says: “Women are being left behind in their pay and pension saving at key life stages and decisive action is needed to reform current policies and practices to support businesses and individuals in addressing saving inequality. Alongside employers, our research with IES highlights the need for the government to increase their efforts to close the gender pension gap.
“Efforts should be focused on improving pension policy, providing better support for employers and introducing legislative protections for women at life events. We have identified key recommendations for these areas, including better pension accessibility and information, boosting financial literacy, and improving access to care and flexible working.
“Coordinated cross-departmental action to reform policy at the points which make the biggest impact to women’s working lives will lead to meaningful progress on the gender pension gap.”
Institute for Employment Studies research fellow Abbie Winton says: “If the current and future governments fail to act on the gender pension gap, we can be certain that increasing numbers of women will receive an income at retirement which will fail to allow them to meet their basic needs.
“Legislative changes, particularly around the removal of auto-enrolment thresholds, widening access to advice, improving the affordability and accessibility of child and social care, and rights to flexible working, are all critical to allow individuals to take control over both their working lives and their ability to save in a way that works for them.”
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