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Why the pension gender gap exists (and how to boost your retirement savings)

Why the pension gender gap exists (and how to boost your retirement savings)

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Melanie Wright

Published: August 29, 2025 at 11:02 AM

Women continue to lag far behind men when it comes to pension saving, leaving many facing significantly lower incomes in retirement.

It’s not all doom and gloom, however, as there may be steps you can take now to boost your pension and secure a more comfortable future. Here’s what you need to know.

What is the pension gender gap?

In the first half of 2025, men contributed an average of £1,845 per quarter into their pensions, according to research carried out by PensionBee, while women contributed £1,347 – a 27% gap.

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Separate analysis by the Department for Work and Pensions (DWP) found a 48% gender pensions gap among those approaching retirement. The pension gender gap is the percentage difference in sizes of pension savings between men and women aged 55 to 59 with private and workplace pensions, and it excludes the State Pension and pensions which are already being paid out.

Lisa Picardo, chief business officer at PensionBee, said: “The stubborn gender pension gap is not just a product of the gender pay gap, it is compounded over decades as women take more career breaks to look after children, take on more part-time work and bear disproportionate caregiving responsibilities. Too often, these structural realities mean lower pension contributions and sometimes no retirement savings at all, translating into smaller pension pots and greater financial insecurity for women in later life.”

The DWP’s report shows that women aged between 55 and 59, on average, can expect to have built up a pension pot of £81,000, giving an estimated annual retirement income of £6,000 from age 60. This compared to an average pension pot of men of £156,000 for men the same age, which would provide them with an estimated annual income of £11,000.

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Kate Smith, head of pensions at Aegon, said: “The reality of pension saving inequality really hits home as on average women will receive just over half the pension income of men. This is compounded, as women, on average, tend to live longer than men, meaning they need to save more, not less.”

Ways to boost your pension

If you’re worried that your pension savings won’t be enough to cover your essential costs in retirement, there are things you might be able to do to top them up.

Plan as a couple. If you’re in a relationship If you have a partner, retirement planning should be a joint effort. Think about ways you might be able to maximise your combined resources, for example by topping up each other’s pensions and ensuring you both qualify for the full State Pension.

Boost pension contributions when your income increases Whenever you get a pay rise, consider directing some - or even all - of that extra income into your pension if you can afford to. This can be an easy way to increase your retirement savings without impacting your current budget too much.

Make the most of employer contributions. Check if your employer offers matching contributions to your pension. If they do, try to pay in a bit more to take full advantage of this. It’s essentially extra money towards your future and you’ll also benefit from tax relief on any money you pay in.

Check your State Pension entitlement. If you’ve taken time out to care for children or family, make sure you claim NI credits, so you don’t miss out on your full State Pension entitlement. You can claim NI credits in a wide variety of situations, and you can check your eligibility for credits at UK.