Bridging the Gap: Gender Equity and Pensioner Hardship in the UK
October 2, 2024, 9:50 am
Location: United Kingdom, Wales, Newport, Wales
Employees: 1001-5000
Founded date: 1954
In the UK, two pressing issues collide: gender equity in investment and the financial struggles of pensioners. Both highlight the widening chasms in society. One is a tale of ambition and potential; the other, a story of vulnerability and survival.
The Investing in Women Code is a beacon of hope. It aims to boost investment in female founders. The latest report reveals a promising trend. Signatories of the Code are investing more in women-led businesses. Last year, 32% of their deals went to female founders. This is a step up from the market average of 28%. For four consecutive years, these signatories have outperformed the broader market.
Yet, the journey is far from over. The numbers tell a stark story. The average angel investment in all-female teams is 50% lower than in mixed-gender or all-male teams. This disparity underscores a persistent bias. The investment landscape remains skewed.
On the other side of the spectrum, pensioners in the UK face a different kind of struggle. About a quarter of the adult population is over 66. Their financial well-being is crucial for the nation’s overall living standards. Most pensioners rely heavily on pensions, both public and private. Yet, the income gap between pensioners and working-age individuals is narrowing. In 2022-23, the average pensioner income was £533 per week, compared to £589 for working-age adults.
This difference may seem small, but it reveals a deeper issue. Over the years, pensioner incomes have fluctuated. From 2002 to 2007, pensioners saw a 3.4% annual increase. In contrast, working-age households grew by only 0.8%. After the financial crisis, the narrative shifted. Working-age households suffered a 3% drop in real income, while pensioners enjoyed a 22% rise.
However, the tide has turned again. State and private pensions have faced real-term declines since 2020-21. The 3.1% increase in state pensions in April 2022 fell short against a 9% inflation rate. This mismatch erodes purchasing power. Defined benefit schemes, which many pensioners rely on, are also struggling. Their annual increases are capped at 2.5% or 5%, failing to keep pace with inflation.
Housing tenure plays a crucial role in pensioner income. In 2022-23, 74% of pensioner households owned their homes. Only 5% were private renters. This stability shields them from market volatility. In contrast, many working-age households grapple with mortgages and rising rents.
Yet, the shadows of poverty loom large. Pensioner poverty rates have followed a “U-shaped” pattern. In 2002-03, a quarter of pensioners lived in poverty. By 2011, that number dropped to 13%. But by 2022, it climbed back to 16%. The poorest pensioners are not benefiting from rising incomes as their wealthier counterparts do.
The COVID-19 pandemic exacerbated these issues. More pensioners reported being unable to afford basic necessities. In 2022-23, 4.8% struggled to heat their homes, a significant rise from 1.7% in 2020-21. The percentage of pensioners facing difficulties with regular expenses also increased.
Despite these challenges, material deprivation rates for pensioners remain lower than in the early 2010s. However, the recent cost-of-living crisis has undone much of the progress made.
Income inequality among pensioners is widening. From 2002 to 2011, the poorest saw a 14% income increase. Meanwhile, high-income pensioners enjoyed a 22% rise. Since 2011, low-income pensioners have seen only a 5% increase, while middle- and high-income groups grew by 12% to 13%.
State pension reforms since 2010 have aimed to address these disparities. Women, in particular, have benefited. Before reforms, women received significantly lower state pensions than men. Now, women born between 1950 and 1952 receive 90% of what their male counterparts do.
Despite these gains, relative poverty rates among women remain steady. They still struggle to match median family incomes. The decline in other state benefits has hit the poorest pensioners hardest.
The financial landscape for pensioners is complex. While average incomes have risen, income inequality has also increased. The challenges of living costs and inflation disproportionately affect lower-income pensioners.
The government faces a critical task. As it implements further pension reforms, it must ensure that all pensioners can maintain a decent standard of living. The dual narratives of gender equity in investment and pensioner hardship reveal a society at a crossroads.
The road ahead requires commitment and action. Bridging these gaps is not just a matter of policy; it’s a matter of humanity. The UK must strive for a future where every individual, regardless of gender or age, can thrive. The time for change is now.
The Investing in Women Code is a beacon of hope. It aims to boost investment in female founders. The latest report reveals a promising trend. Signatories of the Code are investing more in women-led businesses. Last year, 32% of their deals went to female founders. This is a step up from the market average of 28%. For four consecutive years, these signatories have outperformed the broader market.
Yet, the journey is far from over. The numbers tell a stark story. The average angel investment in all-female teams is 50% lower than in mixed-gender or all-male teams. This disparity underscores a persistent bias. The investment landscape remains skewed.
On the other side of the spectrum, pensioners in the UK face a different kind of struggle. About a quarter of the adult population is over 66. Their financial well-being is crucial for the nation’s overall living standards. Most pensioners rely heavily on pensions, both public and private. Yet, the income gap between pensioners and working-age individuals is narrowing. In 2022-23, the average pensioner income was £533 per week, compared to £589 for working-age adults.
This difference may seem small, but it reveals a deeper issue. Over the years, pensioner incomes have fluctuated. From 2002 to 2007, pensioners saw a 3.4% annual increase. In contrast, working-age households grew by only 0.8%. After the financial crisis, the narrative shifted. Working-age households suffered a 3% drop in real income, while pensioners enjoyed a 22% rise.
However, the tide has turned again. State and private pensions have faced real-term declines since 2020-21. The 3.1% increase in state pensions in April 2022 fell short against a 9% inflation rate. This mismatch erodes purchasing power. Defined benefit schemes, which many pensioners rely on, are also struggling. Their annual increases are capped at 2.5% or 5%, failing to keep pace with inflation.
Housing tenure plays a crucial role in pensioner income. In 2022-23, 74% of pensioner households owned their homes. Only 5% were private renters. This stability shields them from market volatility. In contrast, many working-age households grapple with mortgages and rising rents.
Yet, the shadows of poverty loom large. Pensioner poverty rates have followed a “U-shaped” pattern. In 2002-03, a quarter of pensioners lived in poverty. By 2011, that number dropped to 13%. But by 2022, it climbed back to 16%. The poorest pensioners are not benefiting from rising incomes as their wealthier counterparts do.
The COVID-19 pandemic exacerbated these issues. More pensioners reported being unable to afford basic necessities. In 2022-23, 4.8% struggled to heat their homes, a significant rise from 1.7% in 2020-21. The percentage of pensioners facing difficulties with regular expenses also increased.
Despite these challenges, material deprivation rates for pensioners remain lower than in the early 2010s. However, the recent cost-of-living crisis has undone much of the progress made.
Income inequality among pensioners is widening. From 2002 to 2011, the poorest saw a 14% income increase. Meanwhile, high-income pensioners enjoyed a 22% rise. Since 2011, low-income pensioners have seen only a 5% increase, while middle- and high-income groups grew by 12% to 13%.
State pension reforms since 2010 have aimed to address these disparities. Women, in particular, have benefited. Before reforms, women received significantly lower state pensions than men. Now, women born between 1950 and 1952 receive 90% of what their male counterparts do.
Despite these gains, relative poverty rates among women remain steady. They still struggle to match median family incomes. The decline in other state benefits has hit the poorest pensioners hardest.
The financial landscape for pensioners is complex. While average incomes have risen, income inequality has also increased. The challenges of living costs and inflation disproportionately affect lower-income pensioners.
The government faces a critical task. As it implements further pension reforms, it must ensure that all pensioners can maintain a decent standard of living. The dual narratives of gender equity in investment and pensioner hardship reveal a society at a crossroads.
The road ahead requires commitment and action. Bridging these gaps is not just a matter of policy; it’s a matter of humanity. The UK must strive for a future where every individual, regardless of gender or age, can thrive. The time for change is now.