Gender Pension Gap

The potential barrier to reaching the same savings levels as men

Gender Pension Gap

Gender Pension Gap

The gender pension gap is an issue that extends beyond just the disparity in earnings between men and women. It also encompasses other aspects such as financial confidence, engagement with financial products and socio-economic factors.

According to new research, women are 33% more likely than men to say they do not understand how their pension works, indicating a lack of financial confidence[1]. This lack of confidence may explain why some women are less likely to engage with financial products. For instance, women are 38% less likely than men to have a Stocks & Shares ISA and 32% less likely to have a private pension.

Career breaks for childcare

This engagement gap, along with other factors like the gender pay gap, could result in young women in the UK (aged 22 to 32) having just £12,873 per year by the time they retire in the 2060s. In contrast, young men are projected to have nearly a third more, receiving an average of £19,803 in annual income.

The research highlights the gender pay gap also contributes significantly to the gender pensions gap. By the age of 27, women already earn £10,000 less than men of the same age. Other factors impacting women’s pension savings include being less likely to hold senior leadership positions and being more likely to take career breaks for childcare.

Reaching the same savings levels

According to the research, young women are currently projected to have £300k less in their pension pots than their male counterparts by the time they reach the current State Pension age. Women are also more likely to work part-time or on reduced hours, take career breaks for child-care, act as unpaid carers or need time off work for medical reasons, such as menopause.

In addition, women often self-identify as having lower confidence regarding savings and investments. This presents another potential barrier to reaching the same savings levels as men. Addressing this issue requires a multi-faceted approach that includes promoting financial literacy among women, creating policies that support women during career breaks and addressing the gender pay gap.

Ready to secure your financial future today?

The gender pension gap is a pressing issue. If you have any concerns, we can help you overcome them with the right actions. Don’t let it dictate your retirement. You can secure your financial future with the right knowledge, planning and action. To find out more and to discuss your situation, please get in touch with us. We look forward to hearing from you.


Source data:

[1] Analysis based on the following research and assumptions for Legal & General by Opinium Re-search conducted 2,000 online interviews of people aged 22-32 between 15–29 August 2023 – CPI = 3% • Salary premium = 1% – Salary increase = 4% p.a. (this assumes that salary increases on an annual basis up to retirement at 68) – Median male salary at age 27 = 35,000 – Median female salary at age 27 = 25,000 – Start saving into a workplace pension at age 22, retiring at age 68 – Investment return on pension pot, assuming broad 60/40 asset split, (7% p.a., 4% real) – Qualifying earnings – Currently (£6,240 to £50,270), Historical years (actual LEL and UEL), Future years (increased annually by CPI assumption) – Income based on current Legal & General annuity – fixed rate, single person annuity at age 68, with a 10-year GMPP. Women are 33% more likely than men to say they do not understand how their pension works – 320 (men) – 425 (women) = 105. 105 / 320 = 32.8125% (33%) Women are 38% less likely than men to have a Stocks & Shares ISA – 324 (men) – 201 (women) = 123. 123 / 324 = 37.962962962963% (38%) Women are 32% less likely to have a private pension – 324 (men) – 221 (women) = 103. 103 / 324 = 31.79012345679% (32%)


This information has been prepared using all reasonable care.  It is not guaranteed as to its accuracy, and it is published solely for information purposes.  It is not to be construed as a solicitation or offer to buy or sell securities and does not in any way constitute investment advice.

Information based on our current understanding of taxation legislation and regulations.  Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down.  You may not get back the original amount invested.

Past performance is not a reliable indicator of future performance.

Tax advice is not regulated by the Financial Conduct Authority.


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