IFS examines gender pension gap and notes drivers of difference

Article summary

The Institute for Fiscal Studies (IFS) has published findings from its ongoing investigation into the differences in pension saving rates between men and women. The IFS identified three main potential drivers of difference in private pension wealth or income between men and women, namely, different labour market experiences, different saving rates and different investment strategies. It is believed that identification of these drivers of difference is crucial to determine what policy intervention, if any, will be desirable. However, the IFS explained that because the role of the potential drivers of difference will have changed over time, the gaps in pension income today may reflect labour markets and pension arrangements from several years ago. Indeed, it notes that with the introduction of automatic enrolment, and as the labour market attachment of mothers has changed, the gap in future pension income for current working age individuals may be different.