A report from Scottish Widows shows a significant gender pension gap in the UK, with women potentially £100,000 worse off than men at retirement, amid efforts to improve through legislative changes.
Women in the UK are facing a significant gender pension gap, with research from Scottish Widows showing a disparity of up to £100,000 compared to men by the time they reach 65. Contributing factors include the gender pay gap, part-time employment, career breaks for childcare, and the high cost of childcare. This situation particularly affects single, divorced, and single mothers, with many not on a path to secure a basic lifestyle in retirement. Despite these challenges, there are positive developments, such as the increase in women enrolling in workplace pensions due to auto-enrolment laws. Recent legislation, lowering the age requirement and removing the lower earnings limit for auto-enrolment, promises further improvement. Scottish Widows has also introduced the Beat The Gap tool to educate and assist individuals in enhancing their pension savings.
In another sector, UK mortgage reforms have come under criticism from the Building Societies Association, which argues that they prioritize financial stability at the expense of accessibility for first-time buyers. The association has observed a decline in mortgages for first-time buyers since the mid-2000s, attributed to stringent loan affordability and repayment rules, including a cap on borrowing. It advocates for the reconsideration of these regulations and for more flexible mortgage products. Although acknowledging the importance of financial stability, the association calls for a balanced debate on mortgage accessibility for first-time buyers.
Meanwhile, the US housing market is experiencing stagnation, with prices remaining constant despite a strong economy. According to the Case-Shiller price index, house prices have been high but unchanged due to elevated mortgage rates, which have kept home sales low. The Federal Reserve’s current monetary policies and the debate over quantitative tightening (QT) further add to the market’s uncertainties. Fed officials are divided over the approach to QT, which will influence the future monetary policy and its impact on both the housing market and the broader economy. This ongoing situation highlights the intricate relationship between monetary policy, market conditions, and economic growth.
