The pension gap for women is real – here's what you can do about it

I had a conversation recently with a client – a woman in her late fifties – who told me she'd never really looked at her pension. Not because she wasn't interested. Life had just got in the way – raising children, working part time, juggling everything. The pension was always something she'd get round to "one day."

That conversation has stayed with me. Because she's far from alone.

It's International Women's Day this month, and I want to talk about something that doesn't always get the attention it deserves – the gap between what women know they should be doing with their money and what actually happens. Not in a doom-and-gloom way. In a practical, roll-up-your-sleeves, let's-sort-this-out way.

Two of our three advisers at Ginkgo are women. That's not something we engineered for marketing purposes – it's just who we are. But it means we have these conversations a lot. And the patterns we see in our meeting room reflect what the national research is saying loud and clear.

What's actually going on?

Here's a number that stopped me in my tracks. The government's own figures show that, by the time men and women reach their late fifties, the average man's private pension pot is almost *twice* the size of a woman's at the same age. That's a 48% gap – not in earnings, but in what's been set aside for the future.¹

Scottish Widows put it in pounds and pence: women approaching retirement have a median pension pot of around £173,000, compared to £286,000 for men. That's a difference of £113,000.²

And it's not because women are bad with money. Far from it. It's because life gets in the way in ways that hit women's finances harder.

Why does this happen?

You probably already have an idea. But it's worth naming the big ones, because once you see them clearly, you can start to work around them.

• Career breaks add up. Women are twelve times more likely than men to take time out of work for childcare. Scottish Widows estimate that a five-year career break starting at 35 could reduce your final pension pot by nearly £70,000 – not just because of the contributions you miss, but because of the investment growth those contributions would have earned.²
• Part-time work means part-time pensions. Around 37% of women in employment work part time, compared to 13% of men.¹ If you're earning below £10,000 a year, you won't even be automatically enrolled into a workplace pension.
• Longer lives need more money. Women live longer than men on average. That's lovely in many ways – but it means your money has to stretch further in retirement. The same pot needs to last more years.
• Divorce can reshape everything. Pensions are often the biggest financial asset after the family home, but they're frequently overlooked in divorce settlements. I see this a lot. People focus on the house, the savings, the visible things – and the pension, which might be worth far more, gets left out of the conversation.

So what can you actually do?

This is the bit that matters. Not just understanding the problem, but doing something about it. Here are some questions worth sitting with – and some actions that don't require a financial adviser (though we're here if you want one).

Do you know what your pension is actually worth?

It sounds basic, but a surprising number of people – women and men – don't know the answer. If you've had several jobs, you might have pensions scattered across different providers. The government's free Pension Tracing Service can help you track them down. Just knowing what you've got is a powerful first step.

 Are you paying in enough?

Your employer has to contribute at least 3% of your qualifying earnings, and you'll pay in at least 5%. But that minimum – 8% in total – often isn't enough for a comfortable retirement. If you can afford to increase your contributions, even by 1% a year, the compound effect over time is significant. Ask your employer if they'll match additional contributions – some will.

Have you checked your State Pension forecast?

You can do this online in about ten minutes at gov.uk. It'll tell you how much State Pension you're on track for and whether you have any gaps in your National Insurance record. If you've taken time out for caring, you should have received National Insurance credits through Child Benefit – but it's worth checking they're actually on your record.

If you're going through a divorce, is the pension on the table?

Please don't skip this one. A pension sharing order can be the difference between a comfortable retirement and a difficult one. It's worth getting specialist advice – both legal and financial – before you agree to anything.

Are you part of the financial conversations at home?

This isn't about taking over. It's about being equally informed. Do you know where the pensions are, what the ISAs are worth, who the providers are? If something happened to your partner tomorrow, would you know where to start?

When did you last review your protection?

If people depend on your income – or on what you do at home – then your contribution has financial value, even if it's not reflected in a salary. Life insurance, critical illness cover and income protection aren't just for the main earner.

It's not about catching up – it's about taking charge

Here's the thing I find myself saying to clients all the time: it's never too late to make a difference. Yes, starting earlier helps. But even small changes in your fifties or sixties – consolidating old pensions, reviewing your risk profile, making sure your tax allowances are working hard – can have a meaningful impact.

And if you're in your forties or earlier? You've got time on your side. Use it.

The financial confidence gap between men and women is real. Research from the National Numeracy charity found that only 77% of women feel confident making financial decisions, compared to 88% of men.³ But confidence comes from doing. One conversation, one pension login, one question asked – it builds from there.

If any of this has struck a chord, we'd love to hear from you. A cup of tea, a chat, no jargon – just an honest look at where you stand and what you could do next.

Catriona Bryden - Financial Adviser, Ginkgo Financial

The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.

Approver Quilter Financial Services Ltd Mar 26

Sources

1 Department for Work and Pensions, *Gender Pensions Gap in Private Pensions: 2020 to 2022*, July 2025; House of Commons Library, *The Gender Pensions Gap*, February 2026. https://www.gov.uk/government/statistics/gender-pensions-gap-in-private-pensions-2020-to-2022/gender-pensions-gap-in-private-pensions-2020-to-2022 & https://commonslibrary.parliament.uk/research-briefings/cbp-9517/

2. Scottish Widows, *Women and Retirement Report*, 2025. https://www.lloydsbankinggroup.com/who-we-are/our-strategy/financial-wellbeing/women-and-retirement.html

3. National Numeracy / KPMG, *Financial Confidence Survey*, May 2025. https://www.nationalnumeracy.org.uk/news/why-uk-doesnt-talk-about-money