Women, carers, the ethnic minorities and the self employed are well behind behind the average man when it comes to pension saving, according to a new TUC-sponsored report.

The study, carried out by the Pensions Policy Institute for the Trades Union Congress, the UK’s umbrella organisation for trade unions, shows that women have, on average, £7,500 in savings in defined contribution schemes, compared to £14,500 for men.

Women typically have £32,000 in pension savings in defined benefit schemes, whereas men have £62,900.

The report, The Under-pensioned 2016, reveals large pension disadvantages for women, ethnic minority workers, carers and the self-employed.

The findings show:

• Women – As well as having barely half the pension savings of men, women also receive a far smaller state pension. Women receive 13% (£1,092) a year less than the average state pension and 25% (£2,548) a year less than men get from their state pensions.
• Carers – Carers typically have just £5,800 in savings in defined contribution schemes – 44.8% below average. And carers have only £6,000 amassed in defined benefit schemes – a massive 86.2% below average.
• Black and Minority Ethnic workers – An Indian worker typically has less than half (£22,100) the defined benefit pension savings of a white worker (£45,500). Black pensioners receive 16% (£1,404) less than the average for all pensioners and 20% (£1,820) less than white pensioners in State Pension.
• Self-employed – Self-employed workers typically have 4.8% less in defined contribution savings and 12.7% in defined benefit savings than average pensioners.
  The Under-pensioned 2016 report says reasons for the disparities include workplace discrimination, job segregation and the lack of flexible working.

The report warns that despite recent changes to state and workplace pensions, these divisions will remain unless the government takes further action. It states that workers from underpensioned groups are less likely to be eligible for auto-enrolment into workplace pensions than the wider population, typically because their wages are too low.

The TUC says that these are key policy issues that the government should consider when it comes to review auto-enrolment in 2017.

TUC general secretary Frances O’Grady said: “Today’s report is a sobering reminder of Britain’s stark pension divide. Everyone should have the chance of a decent retirement income, not just men in full-time employment.

“Women, carers and ethnic minority workers will continue to have a tough time in old age if swift action is not taken.”