Women get worse pension: report

State pension rules mean that women who are approaching retirement will be about £2,000 a year worse off than men, according to Government research.

A report released by the Department of Work and Pensions (DWP) has claimed women will get an average of £40 a week less than men from the state pension over the next decade. (N.B. The figures are 'gross state pension' levels which take into account state additional pension forgone during periods when someone was contracted out - read full DWP report.) 

Current state pension eligibility is based on how long someone does paid work for - women who take a break to raise children often fail to qualify for a full pension while men can access higher additional pension payments as they typically earn more and work longer.

The DWP research paper said: 'Median gross state pension entitlement for women reaching state pension age between 2010 and 2020 is an average of £40 a week lower than for men reaching state pension age in the same years.'

It is estimated that 40% of women in their 50s have no private savings or pension provision, leaving them entirely dependent on the state pension in retirement.

Copyright Press Association 2011.