The Gender Pension Gap – Why It Still Matters and What We Can Do
The Gender Pension Gap: A Problem We Can’t Afford to Ignore
Let’s talk about the Gender Pension Gap – the difference between how much men and women have saved for retirement. It’s real, it’s persistent, and it matters deeply for every woman’s financial future.
As a mum of two daughters and one son, this issue feels close to home. If we don't address it, my daughters are likely to retire with far less money than their brother — even though women tend to live longer. And that’s a worrying thought.
What is the Gender Pension Gap?
In simple terms, it’s the gap between the average retirement savings of men and women. And it’s substantial.
Recent research published in 2025 by the Pensions Policy Institute found that women aged 55–64 hold just 46% of the private pension wealth of men in the same age group.1
But here’s the kicker: that figure only includes people who have private pensions. It excludes anyone with no pension savings at all – and more women than men fall into that group.
So while the gap in pension wealth is already significant, the true picture is likely even wider when those with no private pension savings are taken into account.
Why Does This Gap Exist?
The reasons are layered — and they’re not just about money.
- Pay gap – Women still earn less on average, so they contribute less.
- Career breaks – Many women take time off to raise children or care for relatives.
- Part-time work – More women work reduced hours, often out of necessity.
- Higher living costs – A greater share of household and childcare costs often falls on women.
- Divorce and separation – Pensions can be overlooked during settlements.
- Health and menopause – Some women are forced to leave work early, reducing contributions.
- Protection gaps – Without income protection, some women stop contributing if they’re unwell.
Over time, these factors create a gaping hole in women’s retirement savings — even though women typically need more money in retirement, not less, due to longer life expectancy and rising care costs.
So, What Can We Do About It?
This isn’t a hopeless situation. There’s a lot you can do — starting today.
✅ Check your State Pension forecast - www.gov.uk/check-state-pension.2 Find out how much you’re currently on track to receive.
✅ Track your National Insurance contributions - Missing years could reduce your state pension entitlement.
✅ Find your old pensions – Make sure you know where they are and what they’re worth.
✅ Top up your pension – Even small regular payments can grow significantly over time.
✅ Ask your partner to contribute – They can pay into your pension, and you still get the tax relief up to a certain limit, even if you're not earning.
✅ Review your protection cover – Make sure you’re financially supported if you can’t work.
✅ Include pensions in divorce talks – They’re often a person’s biggest asset after a home.
✅ Start a pension for a child – A little now can give them a big head start later in life.
✅ Know your number – Think about the lifestyle you want in retirement and what it will cost.
✅ Speak to a professional who gets it – I help women with all of the above, and can guide you step by step with advice that’s practical, personal, and clear.
Final Thought
The Gender Pension Gap isn’t just a number – it’s a reflection of how our society values care, careers, and women’s futures. But change starts with awareness and action.
You don’t need to fix everything today. But a few small steps now can help provide a more secure and confident retirement later.
If you'd like to explore where you stand — or how to improve things — let’s have a chat. I help women take control of their financial futures, one decision at a time.
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1 Source: Pensions Policy Institute, PPI Digest: International Women’s Day 2025 – analysis of the gender pension gap.
2 Source: GOV.UK, Check your State Pension forecast. 2026.
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Although the content of the article was correct at the time of writing, the accuracy of the information should not be relied upon, as it may have been subject to subsequent tax, legislative or event changes.
