The gender pensions gap

The gender pensions gap is one of the most persistent inequalities in the UK financial landscape—and it’s not closing fast enough. While we’ve seen progress in areas like auto-enrolment and workplace pensions, recent data paints a troubling picture: women not only retire with significantly less pension wealth than men, but also feel far less confident about managing it.

For financial advisers, this represents both a challenge and an opportunity.

Confidence in retirement planning is not equally shared. Research shows that just 33% of women feel confident about investing, compared to more than half (54%) of men.

Another survey revealed that only 12% of women feel “very confident” their pension contributions will sustain them through retirement—compared with 21% of men. Almost half of women (48%) admitted to feeling not confident at all.

Meanwhile, 69% of women say they have limited understanding of pensions and investments, versus 43% of men—a disparity linked to lower levels of financial education, particularly among older women.

The wealth gap behind the numbers

The Department for Work and Pensions (DWP) reports that women aged 55–59 hold median private pension wealth of £81,000, compared with £156,000 for men—a 48% gap. To estimate an illustrative income, an annuity rate for a 60-year old of around 7% has been used to convert the pension pot into an annual income. This would be around £6,000 per year for women (over £100 a week) and around £11,000 for men (over £200 a week), a gap of around £5,000 per year.

MoneyWeek highlighted that 73% of savers plan to rely on a partner’s pension, but with such disparities in pension pots, this reliance risks leaving women particularly  vulnerable in the event of a sudden death or relationship breakdown.

Meanwhile, a different study has found that the contributions gap is narrowing in some age groups, but worryingly, it has widened for women aged 30–45 by around 3%. By the time women reach 60, their average pension pots are still 43% smaller than those of men.

Advisers are uniquely placed to change the narrative. The figures show women often:

• Take more career breaks.
• Work part-time, falling below contribution thresholds.
• Feel less confident about investing.
• But each of these barriers can be addressed through:
• Proactive engagement with younger women.
• Bridging gaps during career breaks.
• Boosting financial confidence through education.
• Partnered planning that stresses financial independence.

But each of these barriers can be addressed through:

• Proactive engagement with younger women.
• Bridging gaps during career breaks.
• Boosting financial confidence through education.
• Partnered planning that stresses financial independence.

At iPensions Group, we believe that modern pension provision must evolve to reflect today’s diverse working lives. Advisers are central to this mission. By combining education, engagement, and empathy, advisers can help ensure that women don’t just save for retirement, but do so with clarity, confidence, and control.

Disclaimer

The content of this article is for general information purposes only and should not be construed as legal, financial or taxation advice. You should not rely on the information contained in this article as legal, financial or taxation advice. The content of this article is based on information currently available to us, and the current laws in force in the UK. The content does not take account of individual circumstances and may not reflect recent changes in the law since the date it was created. It is essential that detailed financial and tax advice should be sought (as well as legal advice where required) in both the UK and any jurisdiction where you are resident.

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