Closing the gender pension gap

What is the gender pension gap? 

The gender pension gap is one of the most persistent financial inequalities affecting women today. According to the latest Scottish Widows Women and Retirement 2025, PDF(3.1MB), on average men retire with a pension of around £286k, whereas it’s around £173k for woman (£113,000 less than men) — a 32% gap that has widened in the past year.

Why does the gap exist?

Did you know?

Half of all women have taken a career break and a quarter over 55 have taken breaks totalling 5 or more years. This compares to just 3% of men.

Women are more likely to earn less and also more likely to experience a range of life events which negatively affect how they save for retirement, such as reduced working hours and taking parental leave.

The gender pay gap

Lower average earnings reduce the amounts women can contribute over a lifetime, limiting the pace of pension growth.

Career breaks for caring responsibilities

Women are 12 times more likely to take extended breaks for childcare or caring responsibilities, significantly reducing contributions and salary progression.

Time out of the workforce affects State Pension entitlement

Career gaps can result in fewer qualifying years for the full State Pension, widening the gap further.

Lower levels of investing

Women are more likely to think investing is not for them (50%, compared to 38% of men) – even if they’re already investing in a workplace pension.

Divorce and wealth splitting

Pension wealth is often overlooked or not split equitably during divorce, placing women at a long‑term disadvantage.

What can be done to close this gap?

Here are some practical steps that could make a meaningful difference:

  • Check your pension contributions – aim for a combined contribution of around 15% of your salary where possible. Small increases now can have a big impact later.
  • Stay enrolled in your pension scheme – auto‑enrolment brings valuable employer and government contributions — staying in is one of the most effective ways to build long‑term wealth.
  • Understand your State Pension entitlement – check your forecast on gov.uk to ensure you’re on track for a full qualifying record.
  • Track down previous pensions – the Government’s pension tracing tool can help you bring older pots under control.
  • Explore saving and investing options – from ISA savings to regular investing, diversifying your approach could help close the long-term wealth gap.

Together, we can close the gap

While the gender pension gap remains significant, the latest research shows real momentum for change. Younger generations are saving earlier, conversations are becoming more open, and technology is helping people understand the long-term impact of their choices.

Closing the gap isn’t just a women’s issue — it benefits families, workplaces and society as a whole. By raising awareness and taking practical steps today, we can build a stronger, fairer financial future for everyone.

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