The Gender Pensions Gap

Link: https://www.actuarialpost.co.uk/article/the-gender-pensions-gap-19479.htm

Excerpt:

 The difference between the mean retirement income of men and women aged 65 and over currently stands at an average of 26% across OECD countries, however in the United Kingdom it is even higher than that at somewhere between 34% and 43%.

 There are many reasons for this gap, both economic and societal, and the report gamely provides an analysis of them all. Ultimately however, the greatest impact is down to the differences in work patterns between male and female employees. Women in the OECD have on average a career which is a third shorter than that of men and are much more likely to be working part time. On top of this they are paid less for the work they do, with the gender pay gap standing at 13%, a difference that, unsurprisingly, starts to appear between the ages of 24 and 35 when women are most likely to take a career break in order to raise a family.

 Third tier pension contributions are strongly correlated with earnings and so women tend to save lower amounts and for less time.

Author(s): Fiona Tait

Publication Date: 19 April 2021

Publication Site: Actuarial Post (UK)

Continuing COVID hangover would see pension liabilities drop

Link: https://www.actuarialpost.co.uk/article/continuing-covid-hangover-would-see-pension-liabilities-drop-19483.htm

Excerpt:

Only in the event of a tragic Covid-19 scenario, seeing continued substantial additional deaths for many years would there be a significant reduction in UK DB scheme liabilities, according to a new report from LCP.


While LCP believes that the financial impact on DB schemes of direct deaths from the first two Covid-19 waves is likely to be marginal, it outlines several other scenarios around the pandemic’s longer-term impact on mortality rates and scheme labilities. The range of outcomes illustrates the challenges of choosing an appropriate mortality assumption at the current time, with much uncertainty over how Covid-19 will play out.

Author(s): Chris Tavener

Date Accessed: 20 April 2021

Publication Site: Actuarial Post (UK)