LGPS gender pensions gap far more complex than thought
Author: LAPF Investments | Published: September 16, 2026
The gender pensions gap is shaped by more than gender alone, according to new research from Investors for Purpose.
As part of this study, the membership organisation conducted a case study on Westminster City Council. Its analysis found Westminster City Council had a gender pension gap of 18.7%, half the 34.7% gap seen across the wider LGPS – meaning women had accrued 81p in pension benefit for every £1 accrued by men, compared to 65p across the LGPS.
Conducted in partnership with Westminster City Council, as well as Hymans Robertson and the Scheme Advisory Board (SAB), the research also found that members from ethnically diverse backgrounds had accrued 30.3% less under the career average revalued earnings scheme than white members.
Broken down, men from ethnically diverse backgrounds had accrued 46% less than white men, while women from ethnically diverse backgrounds had accrued 30.2% less than white women.
Generation Z, meanwhile, had the lowest pension participation rates, with 74% of generation Z men participating in the scheme.
Reflecting on the findings, Investors for Purpose chief executive Charlotte O’Leary said: “Westminster City Council and the City of Westminster Pension Fund deserve real credit for commissioning and enabling this research.
“The gender pension gap in our Westminster case study being substantially below the wider LGPS level is encouraging, and it demonstrates what is possible when employers and schemes commit to understanding the real-world issues that their members face.
“This research also shows why pension savings gap research and analysis beyond pure reporting is needed.
“When taken together and looking at the interaction between and across gender, ethnicity, disability and generation, the picture becomes more complex and more nuanced reflecting a need to understand root causes and systemic impacts before setting policy.
“I believe, for example, that an LGPS-wide ethnicity benchmark would be transformative based on the research. It would give every scheme and employer the ability to understand their own position, identify where action is needed and track progress over time.
“We are often told that we don’t have the data, but Westminster’s leadership in this has proven that the data can be gathered, analysed and acted on.
SAB secretary Clair Alcock added: “I am proud that the LGPS is the first public service pension scheme to have made gender pension gap reporting business as usual. What this groundbreaking research shows is that, if we are serious about understanding inequality in pension outcomes, gender alone is not enough.
“By examining ethnicity, disability and age alongside gender, the report begins to build the evidence base needed to drive meaningful change. I would encourage ministers to build on this progress by extending pension gap reporting to other protected characteristics and across all public service pension schemes.”
Westminster City Council’s executive director, finance and resources Gerald Almeroth added: “As a Scheme Employer within the City of Westminster Pension Fund, Westminster City Council was proud to support this work by providing employer data and insight.
“The findings will help strengthen our understanding of where pension gaps exist, what drives them and how employers, funds and other stakeholders can work together to improve engagement, inform policy development and ensure more people can fully benefit from the valuable retirement security offered by the LGPS.”
