Women must work eight years more to get the same pension pot as men

The 36pc pension gender gap is caused by differences in salary, and because women tend to take more time out of the workforce during their careers.

The research found a 22pc gender salary disparity among members of Irish Life pension plans. The 130,000 people analysed did not include public servants, and would have comparatively fewer young people and lower-paid employees, who are less likely to be in pension schemes.

Women take an extra six years out of the workforce, the research found, which in practical terms means a six-year break in their pension contributions. The calculation is that a woman starting with a 22pc lower salary, and with a break in contributions at the age of 30, would have to pay into a pension plan for eight years more than a man in order to get the same-sized pot.

Because women can also expect to live more than three years longer than men on average, the dual effect leaves them at greater risk of poverty in old age.

The report points out that Ireland has one of the highest retirement ages in the world, as state pension entitlement does not kick in until 66. With average life expectancy for Irish women now standing at 84.3, it means they will typically be retired for almost 20 years.

When it comes to making pension contributions, there is no major differences in the ages that men and women begin saving into their funds, with the average being 34 for both, the Irish Life analysis found. Nor is there a big difference in the proportion of salary they put aside. This shows that saving habits are not the reason for the gender pension gap.

The genders also tend to have similar investment behaviour. “The large majority of both men and women are in the ‘default’, or personal lifestyle strategy,” the report says. “Our data shows that 17.1pc of men choose their own investments versus 12.5pc of women.”

Men tend to make more additional voluntary contributions (AVCs). They are 60pc more likely to make one-off payments, and 12pc more likely to make regular AVCs.

Shane O’Farrell, a director at Irish Life, said the gender pension gap gets less attention and is not as well understood as the pay gap, even though it is larger and has a bigger long-term impact.

He said that in the new auto-enrolment scheme, due to take effect next year, the Government could build in the flexibility to allow women increase their pension contributions and make up for periods of leave.

“Employers can also play a key part by reviewing their own workplace benefits and designing initiatives with their pension provider to economically empower the women in their workforce,” Mr O’Farrell said.

”Another option for employers to help address the gender pension gap at source, before it has a chance to compound, is to introduce a pension-specific workplace policy, adding an additional employer contribution for a period of time for women returning from maternity leave. We’ve taken this step ourselves to begin to address this gap.”

The report also found that men are almost twice as likely to earn over €100,000 a year – 15pc versus 9pc. By contrast, women are twice as likely to be on a salary under €30,000 – 18pc versus 9pc.