Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • August 2018
08

Gender pay gap continues to fuel pension inequality

Open-access content Thursday 2nd August 2018 — updated 5.50pm, Wednesday 29th April 2020

Failure to close the gap between male and female pay is disproportionately excluding women from workplace pension auto-enrolment and driving income inequality in retirement.

2


That is according to Aegon's head of pensions, Kate Smith, who highlights how the auto-enrolment requirement of earning at least £10,000 a year from a single job is not being met by almost one-third of women.

This comes on the same day that a report from the Business Committee revealed that 78% of organisations in the UK are reporting gender pay gaps in favour of men, with the pay difference as much as 40% in some sectors.

"This discrepancy will continue to fuel pension inequality unless changed," Smith said. "Tackling the gender pay gap will kill two birds with one stone and fix the gender pension gap."

The committee report also shows that 13% of employers pay men more than women by at least 30%, and that only half the current workforce are covered by present gender pay gap reporting requirements.

It also notes that organisations are excluding their highest paid employees from reporting, making "a nonsense of efforts to understand the scale of, and reasons behind" the gender pay gap.

In response, the MPs calls on the government to widen the net of organisations that publish pay gap data, ensuring the rules apply to smaller businesses with over 50 staff as well firms with more than 250 employees.

They also recommend that businesses be required to publish, alongside their figures, an explanation of any gender pay gaps, action plans for closing them, and progress reports every year.

Committee chair, Rachel Reeves, said the pay gaps were a "monstrous injustice", and that they must be closed in the interests of fairness and promoting diversity at the highest levels of the business community.

"But also to improve the country's economic performance," she continued. "A persistent gender pay gap shows that companies are failing to harness fully the talents of half the population.

"For example, why aren't they offering flexible working at senior levels? They must look at why they have a pay gap, and then determine the right initiatives, policies and practices to close it.

"Chief executives should have stretching targets in their key performance indicators and be held to account for any failure to deliver."

Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our August 2018 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

FTSE 350 pension deficit more than halves in 2018

The UK’s 350 largest listed companies have seen their pension schemes’ accounting deficits fall by more than half so far this year, analysis from consultancy firm Mercer shows.
Friday 3rd August 2018
Open-access content
2

Service sector growth grinds to three-month low

The UK’s services sector expanded slower last month than at any point since April, with employment growth at is weakest in almost two years, new research has found.
Friday 3rd August 2018
Open-access content
2

UK leads the world for FinTech investment in 2018

Brexit fears did not stop the UK’s financial technology industry attracting over $16bn (£12bn) of investment in the first half of 2018, more than any other country.
Wednesday 1st August 2018
Open-access content
2

World's second-largest reinsurer cuts ties with coal business

Munich Re has announced today that it will end insurance coverage for new coal-fired power plants in industrial countries following months of pressure from environmental groups.
Monday 6th August 2018
Open-access content
2

Insurers to invest $2.4bn in big data this year

The global insurance industry is forecast to spend approximately $2.4bn (£1.9bn) on big data in 2018 as firms increasingly look to improve claims processing and fraud detection.
Monday 6th August 2018
Open-access content
2

Insurance firms face fines for climate change reporting failures

Three British insurance companies have been reported to the Financial Conduct Authority (FCA) for failing to disclose climate change risks in their annual reports.
Tuesday 7th August 2018
Open-access content

Latest from August 2018

Public back whiplash compensation reforms

The vast majority of UK adults back government plans to overhaul the way victims of road accidents claim compensation for personal injuries, a new survey has found.
Friday 31st August 2018
Open-access content

Calls to scrap pension tax relief

The UK government should abolish pension tax relief and replace it with bonuses on individual and employer saving contributions, the Centre for Policy Studies (CPS) has said.
Friday 31st August 2018
Open-access content

Pension trustees want TPR checklist for fiduciary management tendering

More than eight in ten pension investment managers and trustees would like to use a checklist provided by The Pensions Regulator (TPR) during the tender process for fiduciary managers and consultants.
Thursday 30th August 2018
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 08

Public back whiplash compensation reforms

The vast majority of UK adults back government plans to overhaul the way victims of road accidents claim compensation for personal injuries, a new survey has found.
Friday 31st August 2018
Open-access content

Calls to scrap pension tax relief

The UK government should abolish pension tax relief and replace it with bonuses on individual and employer saving contributions, the Centre for Policy Studies (CPS) has said.
Friday 31st August 2018
Open-access content

Pension trustees want TPR checklist for fiduciary management tendering

More than eight in ten pension investment managers and trustees would like to use a checklist provided by The Pensions Regulator (TPR) during the tender process for fiduciary managers and consultants.
Thursday 30th August 2018
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Manager - Building new team!

London (Central)
Up to £130k + Bonus
Reference
148845

Shape the Future of Credit Risk Model Development

Flexible / hybrid with 2 days p/w office-based
£ six figure salary with excellent bonus potential + package
Reference
148843

Longevity Director

Flexible / hybrid with 2 days p/w office-based
£ six figure salary with excellent bonus potential + package
Reference
148842
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ