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State pensioners face having to find work until they are 86, they have been warned. Millions of women across Britain could face working into their mid-80s, a new study has warned. Data shows Department for Work and Pensions ( DWP ) state pension women would need to remain in employment for an extra nineteen years beyond the standard retirement age of 67 to match male pension wealth. That means many would need to continue working until the age of 86. Samantha Gould, Head of PR and Campaigns at now:pensions, said: "For far too many in our society, a comfortable retirement remains out of reach, usually through no fault of their own." READ MORE There's one group of drivers you have to feel so sorry for in new UK pay-per-mile car tax People from underpensioned groups - including ethnic minorities, people with disabilities and carers and single mothers - have private pension incomes that range from 18 per cent to 64 per cent lower than the UK average. Ms Gould said: "These groups are often locked out of the auto-enrolment system, unable to earn enough to put money aside for later and as a result, find themselves on the wrong side of a growing pension savings gap." Women’s average annual incomes are 80 per cent of the UK average and 67 per cent of men’s average annual incomes. For single mothers this figure is substantially lower at just 60 per cent of the UK average. Ms Gould said while the current economic environment means that it is challenging for the government to implement potential remedies, “doing nothing is not an option”. “Action is needed now to reduce the pensions gap and allow everyone to enjoy the comfortable retirement they deserve," Ms Gould said. Lauren Wilkinson, lead researcher at the PPI, said: “Private pension incomes of underpensioned groups remain below three-quarters of average population private pension incomes, with some groups experiencing significant declines compared to the 2020 Index. “When income from state pension and benefits are taken into account, the underpensioned gap is smaller but still significant.” Wilkinson added: "The current economic climate could exacerbate the underpensioned gap, making it more challenging to implement further policies to narrow the gap in the short term, but it is important that the underpensioned challenge is approached with a long-term view.”
