Millions of pensioners have been “underpaid”, according to new analysis, despite recent payment “reform”. Recent figures have revealed that the state pension gender disparity has largely decreased to a difference of £1.80 a week amongst retirees who have begun claiming it. The updated pension system addressed previous disadvantages that often left women with fewer entitlements and smaller payouts.

A finance specialist has now indicated that the closing of the pay gap highlights progress towards equal retirement provisions. Due to historical employment gaps and caregiving duties, women’s pension accumulation was often impacted. Data obtained through a Freedom of Information (FoI) request by a former pensions minister reveals the new difference in pay.

Newly retired males are currently receiving £209.95 weekly while females get £208.15. Liberal Democrat Sir Steve Webb has expressed satisfaction with his findings, which indicates the gender pension gap “is nearly won”.

“I am delighted to see that when it comes to the state pension, the battle against the gender pension gap is nearly won for those retiring today,” he said.

“When there is so much negative news about gaps between men and women when it comes to pensions, these figures show that things can be changed, provided that there is the political will to do so.”

While the gap between genders has majorly narrowed, disparities for females who entered retirement prior to the 2016 overhaul may still persist.

Sir Webb added: “There are, however, far too many women who have already retired who are living on reduced pensions, and I will continue to campaign for them to be treated fairly, including by rooting out all of the errors which have led to so many being underpaid for so long.”

Helen Morrissey from Hargreaves Lansdown is also championing continued reforms.

“We need wider reform to address the reasons why women have to leave the workplace or have gaps in their pension savings by making sure they are able to access good quality and affordable childcare as well as more flexibility in the workplace,” she said.