Women in the UK retire with less than half the pension savings of men, according to alarming new research from Royal London. While men have an average pension pot of £92,000, women typically have just £39,000—a gap that threatens financial security for millions in retirement.
Why Is the Gender Pension Gap So Wide?
The disparity isn’t accidental—it’s the result of systemic issues:
🔹 Lower Earnings – Women still earn 14.3% less than men on average (source: ONS).
🔹 Career Breaks – Caring for children or elderly relatives forces many women to take time off work.
🔹 Part-Time Work – 38% of women work part-time vs. 13% of men (source: TUC).
🔹 Lack of Pension Confidence – Only 29% of women feel confident managing pensions vs. 44% of men.
Sarah Pennells, consumer finance expert at Royal London, warns:
“For every £1 a man has saved, a woman has just 42p. This isn’t just a statistic—it’s a glaring inequality.”
How Can Women Close the Gap?
1. Maximise Workplace Pensions
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Check auto-enrolment – Ensure you’re contributing at least 8% (5% from you, 3% from your employer).
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Increase contributions – Even an extra 1-2% can make a huge difference over time.
2. Claim Missing National Insurance Credits
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Child Benefit – Even if you don’t qualify for payments, registering ensures you get NI credits for state pension eligibility.
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Carer’s Credit – If you care for someone 20+ hours a week, you may qualify (source: Gov.uk).
3. Invest in a Private Pension (SIPP)
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Tax relief boosts savings – A £100 contribution costs just £80 for basic-rate taxpayers.
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Consider ethical funds – Many women prefer sustainable investments (see Good With Money for options).
4. Push for Policy Changes
Royal London is urging the government to:
✅ Expand auto-enrolment to include part-time and low-paid workers (currently excluded if earning <£10k/year).
✅ Improve menopause support – Many women reduce hours or quit due to symptoms.
✅ Reform childcare costs – High expenses force many mothers out of full-time work.
What’s Next?
With the government’s pension review underway, campaigners hope for reforms to address these inequalities. But women can’t wait—taking small steps today can secure a better retirement tomorrow.
“We must move beyond telling people to ‘save more’ and fix the system itself,” says Pennells.
Need Help?
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Get a free pension forecast at MoneyHelper
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Explore investment guides at Investopedia
