The average woman retiring over the next decade is likely to receive 40 quid less in her weekly pension packet than that of a man.
This ‘pension pay gap’ is the equivalent of over £2,000 a year – the difference between a comfortable life and one the breadline. If this average woman lived another 25 years after retiring, the loss would be an eye-popping £52,000.
A source at the Department for Work and Pensions said yesterday: 'The archaic pensions system is leaving millions of women in fear of retiring in poverty. They deserve better.'
Dr Ros Altmann, director general of Saga Group, said: 'Millions of women will suffer an impoverished old age because of the way that our pension system has let them down. It is time for a radical rethink.'
Rachel Reeves, the Labour pensions spokesman, said: ‘The average 56-year-old woman has just £9,100 of private pension savings compared to £52,800 for a man the same age.
'Raising the state pension age for a year or more is the very last thing women approaching retirement need. The Government knows that this group of women have missed out in getting a decent pension and now needs to urgently rethink its plans.'