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The pension time bomb hitting millions - and women are paying the highest price

New LCP research warns pensioner poverty is rising again, with single retirees bearing the brunt of the increase. The overall poverty rate climbed from 15.7% in 2012/13 to 18.6% in 2023/24.
Steve Webb, LCP partner, warned that poverty among single pensioners is now nearly double the rate of couples. There were 1.5 million divorced single pensioners in England and Wales in 2024, triple the number recorded in 2002.
Two thirds of single pensioners in poverty are Women, LCP reported. Sir Steve noted: "Issues such as inadequate pension sharing at the end of a relationship and the continuing gender pension gap mean that women in particular are at higher risk of poverty in old age."
Sir Steve said there were practical steps the Government could take: "But there are things we can do about this problem, including encouraging couples to share their pension wealth more easily." LCP also suggested reviewing pension-sharing rules when relationships end.
The Pensions Commission should prioritize these issues in its blueprint, Sir Steve urged: "It is vitally important that the Pensions Commission looks in depth at these issues when drawing up its blueprint for the future of pensions." LCP also recommended reviewing the impact of no-fault divorce on pension sharing.

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