The important history of women and pensions – and why it matters today
A 9 minute read
You’ve heard of the gender pay gap, but how about the gender pensions gap? While it’s a phrase hitting headlines more often in today’s world, the difference in retirement standards between genders is nothing new.
While the earliest record of a pension was predicted to be in 1180[1], the first woman to receive a lifelong pension was Margaret Cochran Corbin in 1779. She received half of what her male counterparts in the American military were rewarded – alongside some new clothes.[2] Laughable, right?
Though life today may feel a far cry from the 18th century (and our pension provider sadly doesn’t send us new threads when we retire), women are still experiencing pension inequality.
What has equality got to do with pensions?
Gender inequality has been present throughout history. While we may automatically think of women not being able to vote until 1914 (even then, it was only *some* women who could – compared to *all* men)[3], it’s arguably present in pension’s history, too. Let’s give you a whistle-stop tour.
State Pension was introduced in the UK in 1908. The State Pension age was 70 for both men and women[4], but was lowered to 65 in 1925.[1]
In 1935, women campaigned for this age to be lowered for them on the basis that they often had to give up work earlier than men.[1] It wasn’t until 1940 that this happened with the introduction of the Old Age and Widows’ Pension Act. It reduced the pensionable age to 60 for unmarried insured women and the wives of insured male pensioners. Women’s contributions were increased accordingly, too.[1]
The increase in State Pension age
In 1995, The Pensions Act called for women’s State Pension age to be gradually increased to be in line with men, at 65. Basically, women were starting to be seen as more equal in society to men. The age wasn’t equalised until 2018.[5]
It’s estimated that 3.6mn women born in the 1950s were affected by the increase in State Pension age. These ‘WASPI’ women (women against State Pension inequality), claim they weren’t properly informed of the State Pension age increase, and therefore suffered financially. 6
Compensation is predicted to be between £1,000 and £2,950 per person 6, and the group have been campaigning for this since 2015 with no luck. 7
What about today?
Today’s State Pension age is 66 for all, and expected to increase to 67 before 2028.[8] However, it’s still common for women to receive less pension than men when they retire. This is for several reasons.
Women are more likely to assume a caregiving role, taking time off to raise children, or to take care of relatives.[9] Many women also take time off work, or even consider quitting, due to the little-talked-about impacts of the menopause.[10] These are often known as ‘pension pauses’.
Women also tend to live longer than men, but there’s fewer women in work.[11] Not to mention that women generally get paid less than men, too – with the gender pay gap being 7% as at April 2024.[12]
This all has a knock-on effect on women’s retirement wealth, and standards of living after work. We call this the ‘gender pensions gap’, with an estimated difference in private pension amounts for men and women being 35%.[13]
Why is it important to me?
We all know women: colleagues, friends, loved ones. So, the most important thing is to be educated about the differences they face when it comes to pensions, and spark conversations with people that perhaps don’t know or understand.
It could be worth setting up a conversation with your employer to learn about their DE&I (diversity, equality and inclusion) policies, and how they’re tackling pension inequality in the workplace. They might have communities you can join, and campaign with.
Pensions inequality across genders is for more than just Women’s History Month in March – rather, let’s work together to make it part of our history, and not our future.
Sources:
[1] The story of a movement | Pensions Archive Trust. Data source: Pensions Archive Trust.
[2] Margaret Cochran Corbin | National Women's History Museum. Data source: National Women’s History Museum.
[3] Women's suffrage - The National Archives. Data source: The National Archives.
[4] Old Age Pensions Act 1908. Data source: House of Commons Library.
[5] Increases in the State Pension age for women born in the 1950s - House of Commons Library. Data source: House of Commons Library. November 2021.
[6] What are Waspi women, and what is the row about their state pension? - BBC News. Data source: BBC News. December 2024.
[7] What is a Waspi woman and what happened to them? | Politics News | Sky News. Data source: Sky News. December 2024.
[8] State Pension Age Review published - GOV.UK. Data source: Gov.uk. March 2023.
[9] Understanding the Gender Pensions Gap. Data source: Pensions Policy Institute. July 2019.
[10] Menopause in the workplace: Employee experiences in 2023. Data source: CIPD. October 2023.
[11] Women and pensions - House of Commons Library. Data source: House of Commons Library. November 2018.
[12] Gender pay gap in the UK - Office for National Statistics. Data source: Office for National Statistics. October 2024.
[13] The Gender Pensions Gap in Private Pensions - GOV.UK. Data source: Gov.uk. June 2023.
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