A growing gap between what men and women receive in employer pensions contributions is causing a £47,000 shortfall for women

A gap between the amount men and women receive in employer pensions contributions means there will be a near £47,000 shortfall by the end of a woman's working life.

According to the Zurich Workplace Savings Barometer, a mass study of 250,000 pension plans, last year on average, men under the age of 35 received £217 more in employer pension contributions than females of the same age.

And between 2013 and 2016, men have benefited from pension contributions of 7.8 per cent of salary each year from their employers, compared with seven per cent for women.

This difference was on top of the gender pay gap and the value of the employer pension contribution was £3,495 for men and £2,489 for women, a difference of £1,000 over a four-year period.

The barometer said that with wage growth taken into account, this difference could amount to a shortfall of £46,689 by the end of a woman's working life.

It flagged three reasons for this difference. Firstly, the gender pay gap led to a lower value of employer contribution as a percentage of salary, secondly women were still more likely to take career breaks to raise a family and thirdly, men typically worked in sectors with either more established or more generous pension schemes.

Rose St Louis, head of new retail distribution at Zurich Insurance, said:

The ‘triple effect’ of smaller salaries, career breaks for women and lower contribution rates needs to be addressed: we can’t ignore a £47,000 shortfall.

Workplace engagement and guidance has a central role to play in helping women make the most of their saving potential while they are working full time, but it is now crucial that greater focus is placed on ensuring that this gap is not allowed to grow any further.

Age group	Gap between male and female employer pensions contributions by age in 2016
Under 35	£217
34-44	£594
45-54	£1,287
55-64	£1,680