Most people know about the gender pay gap. Fewer realise the same inequality follows women all the way into retirement, hitting hardest at the point when there’s least time left to fix it. The House of Commons Library briefing on the gender pensions gap sets out how deep the problem runs, and it’s worth unpacking what’s actually going on.
£136,000 Behind by Retirement
The gender pension gap is one of the most persistent financial inequalities in the UK, and it’s been formally tracked by the government since 2023. Research from NOW: Pensions and the Pensions Policy Institute found that by the time women reach state pension age, they have average pension savings of around £69,000, compared to roughly £205,000 for men. That’s a gap of £136,000.
Put another way, women would need to work an extra 19 years to retire with the same pension pot as men. And because women live longer on average (around 82.8 years compared to 78.8 for men), their smaller savings need to stretch even further.
Where the Gap Comes From
The gender pension gap doesn’t appear overnight. It builds up gradually over a woman’s working life, driven by a few key factors.
Lower pay is the starting point. Women still earn less than men on average, and the pay gap tends to widen after 40. Since pension contributions are usually a percentage of salary, lower earnings mean smaller pots year after year.
Career breaks make things worse. Women are far more likely to take time out to care for children or elderly relatives. Every year away from work means missed employer contributions and lost compounding, and those years add up quickly.
Part-time work is another big factor. Many women return on reduced hours after having children, and some fall below the auto-enrolment earnings trigger of £10,000. NOW: Pensions found women make up 79% of workers earning below that threshold, which means they’re disproportionately shut out of workplace pension contributions altogether.
Practical Moves You Can Make Now
You don’t need to overhaul your finances in one go. A few changes can make a real difference.
Get Personalised Retirement Planning Advice
One of the best things you can do is get personalised retirement planning advice that reflects your actual circumstances. A financial adviser can look at what you’ve built up so far, flag any gaps, and help you make a realistic plan for the years ahead.
This matters even more if you’ve had career breaks, worked part-time for long stretches, or you’re going through a divorce. Pension splitting in divorce is often overlooked, and many women waive their rights to a share of their partner’s pension without fully understanding the long-term impact.
Who’s Claimed Child Benefit?
If you’re on a career break and Child Benefit for a child under 12 is claimed in your household, check whose name it’s under. The person who claims it gets the National Insurance credits that protect state pension entitlement. If the working partner is claiming it while you’re at home, those credits are going to the wrong person. You can transfer them using form CF411A on gov.uk.
Get Familiar With Your Employer’s Pension Scheme
For those in work, look at your employer’s pension scheme. Many employers will match extra contributions, and even a small increase of 1% or 2% will compound significantly over 20 or 30 years. If your employer offers salary sacrifice for pension contributions, that can also reduce your tax bill.
Don’t Forget About Previous Jobs
It’s also worth tracking down any old pension pots from previous jobs. The government’s Pension Tracing Service is free to use through MoneyHelper and can help you find pots you might have forgotten about.
A Gap That Demands Attention Now
The gender pension gap is the result of structural inequalities that have built up over decades. Policy changes like auto-enrolment have helped, but they won’t close the gap on their own, especially for women already in their 40s and 50s.
Taking stock of where you stand today, making the most of what’s available to you, and getting proper financial advice are all practical steps worth taking. The earlier you start, the more difference it’ll make.
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested. Past performance should not be seen as an indication of future performance.
