Clare Moffat, our pensions and tax expert, explains the gender pension gap, the effect it can have on retirement and the steps women can take to build their pension wealth.
The gender pension gap is the difference between the pension wealth of men and women. According to Department for Work and Pensions research (opens in a new window), women aged 55 to 59 had around £52 in private pension savings for every £100 held by men.
The gap can be measured in different ways, including:
- the difference in the value of men’s and women’s pension savings
- the difference in the retirement income they receive
- the difference at a particular age or life stage
- the difference in workplace pension membership or contributions.
The size of the gap can vary depending on the people, pension types and measurement method used, which is why pension gap statistics can differ.
While there’s been progress in improving gender equality in the workplace, women can still face financial challenges that affect how much they save for retirement. Lower average earnings, career breaks, part-time work and caring responsibilities can all have an impact on pension savings over time.
As women tend to live longer than men, their pension savings might need to last longer, making this an important issue to consider when planning for retirement.
Why does the gender pension gap exist?
The gender pension gap develops because differences in earnings, working patterns and caring responsibilities can affect how much someone saves into a pension throughout their working life.
The causes often overlap, and their effects can build over many years.
The gender pay gap
The gender pay gap is the difference between the average hourly earnings of men and women. Lower earnings can mean lower pension contributions and, over time, smaller pension savings.
Career breaks and caring responsibilities
Women are more likely to take time away from work or reduce their working hours to care for children, relatives or other dependants.
Taking a career break or working fewer hours can reduce both employee and employer pension contributions. Even a temporary reduction in contributions can have a long-term impact because there’s less money invested and less time for pension savings to grow.
Part-time work and automatic enrolment
Women are more likely to work part-time than men.
Workers usually need to meet certain age and earnings criteria to be automatically enrolled into a workplace pension. This means some lower-paid or part-time workers might miss out on valuable employer contributions.
Someone with several part-time jobs might earn more than £10,000 overall but less than the threshold needed for automatic enrolment in each job. As eligibility is assessed separately by each employer, they might not be enrolled automatically.
Divorce and separation
Pensions can be one of the most valuable assets built up during a marriage or civil partnership.
However, pension savings aren't automatically divided when a couple divorces or dissolves a civil partnership. This means pension wealth built up during a relationship might not always be shared equally.
What should I consider when thinking about my pension?
Starting to save into a pension early gives your money more time to grow and might reduce the amount you need to contribute later to achieve the same retirement income.
Retirement can feel far away when you’re in your twenties or thirties. Other financial priorities might include renting or buying a home, paying off student debt or managing increased household bills. However, even with these competing costs, it's important not to neglect pension saving.
When you pay into a pension, you benefit from tax relief and, if you're in a workplace pension, contributions from your employer.
Pension tax relief means some of the money that would otherwise have been paid as income tax is added to your pension instead.
For example, for a basic rate taxpayer, an £80 contribution could become £100 after tax relief is added. If your employer then contributes another £100, £200 would be invested in your pension, even though you only paid in £80 yourself.
Combined with potential investment growth, this can help your pension savings build up over time. Tax rules depend on individual circumstances and may change.
How does reducing my hours affect my pension?
Reducing your working hours will usually reduce your pay and might lower the pension contributions made by you and your employer as these are normally calculated as a percentage of your salary.
Before changing your hours, consider:
- how much your own contributions would reduce
- whether your employer’s contribution would also change
- whether other workplace benefits would be affected
- whether you can increase your contributions later.
How can women build up their pension wealth?
"Women can maximise their pensions by understanding how much State Pension they'll receive, as this is the foundation of most people's retirement. It's also important to take advantage of any employer contributions, especially if they offer employer matching or salary sacrifice. Other people can pay into your pension too, which can also help, particularly if you're not working and are caring for others."
- Clare Moffat, Pensions and Tax expert
These are Clare Moffat’s practical tips to consider.
Talk about pensions as a couple
If one partner takes time away from work or reduces their hours, think about how you'll continue supporting that person's pension savings.
A partner or another person can pay into someone's personal pension. Even if you don't earn an income, you can usually pay up to £2,880 into a pension each tax year. The government adds tax relief, increasing the total amount paid into the pension to £3,600.
When deciding who might take a career break or work part-time, look beyond immediate salary. Consider pension contributions, employer contributions and other workplace benefits as part of your overall household finances.
Prepare for maternity or adoption leave
During paid parental leave, your own pension contributions are generally based on the pay you receive, while your employer's contributions are based on the salary you would have received if you weren’t on leave.
Check your employer's parental leave policy and workplace pension rules before your leave begins so you understand how any time away from work could affect your pension savings. Understanding how contributions are calculated could also help you decide whether to increase pension contributions before your leave begins.
Explore flexible working arrangements
Flexible working can help some people balance work and caring responsibilities while continuing to earn and save into a pension.
Employees can now request flexible working from the first day of a new job. This could include changing your hours, working pattern or where you work.
If you're considering changing your hours or working pattern, it's worth understanding how this could affect your pay, pension contributions and other workplace benefits.
Before agreeing to any changes, check how your pension contributions might be affected and whether there are steps you can take to continue building your pension savings.
Check your position if you have more than one job
If you have more than one job, each employer will look at your earnings separately to decide whether you should be automatically enrolled into their pension scheme.
| Annual earnings* | Automatic enrolment status |
| Below £6,240 | You can ask to join a pension scheme, but your employer doesn't have to contribute. |
| £6,240 to £10,000 | You can ask to join and receive employer contributions. |
| More than £10,000 | Eligible workers are normally automatically enrolled. |
*Figures are for the 2026/27 tax year.
If you have more than one job, check each pension scheme separately and ask whether your employer will contribute.
Make the most of your workplace pension
Joining your workplace pension can give you access to employer contributions and pension tax relief.
Some employers offer contribution matching, where they increase their contribution if you increase yours, up to a set limit. Taking full advantage of employer contributions can help boost your pension savings.
Your employer might also offer salary sacrifice or salary exchange. This can be a tax-efficient way of increasing the amount paid into your pension.
For example, if £100 of your salary is paid into your pension through salary exchange, the tax and National Insurance savings can result in more money being invested for your future.
Salary exchange isn't available through every employer, so it's worth checking whether it's offered and how it works before making any changes.
A pay rise or bonus can also be an opportunity to increase pension contributions without affecting your usual budget. Consider whether putting some of the extra money into your pension could help improve your future retirement income.
Check your State Pension entitlement
Your State Pension entitlement depends on your National Insurance record. You normally need at least 10 qualifying years to receive any new State Pension and, in many cases, 35 qualifying years to receive the full new State Pension.
Parents who claim Child Benefit for a child under 12 can normally receive National Insurance credits, helping to protect their State Pension entitlement. Grandparents who are under State Pension age and caring for grandchildren can also claim National Insurance credits. See our Are grandparents getting the credit they deserve? guide for more information.
Make sure you check your State Pension forecast, especially if you're over 50.
If your forecast shows gaps in your National Insurance record, you may be able to increase your entitlement by making voluntary National Insurance contributions. However, this won't be the right option for everyone. Some people will naturally build up enough qualifying years before reaching State Pension age.
If you have gaps because you haven't paid National Insurance or received National Insurance credits, you can normally only go back over the previous six years to fill them.
Ask the right questions as retirement gets closer
As you approach retirement, ask yourself:
- How much income might I need each year?
- What income are my current pensions projected to provide?
- At what age can I access my pension savings?
- Does that match when I plan to stop working?
- Have I checked my State Pension forecast?
- Are there gaps in my National Insurance record?
- Do I need to review how my pension is invested?
- Could I increase my contributions before I retire?
- Have I considered taking regulated financial advice?
- Do I have other savings or investments I plan to use to provide retirement income?
Our retirement planner can help you see how much retirement income you might have and whether your pension savings are on track for your goals.
Frequently asked questions about the gender pension gap
What is the gender pension gap and how is it measured?
The gender pension gap is the difference between men's and women's pension wealth or retirement income. Different studies measure the gap in different ways, which is why statistics can vary.
Why can the gender pension gap be larger than the gender pay gap?
The gender pay gap measures differences in earnings at a point in time. The gender pension gap considers what women have in pensions at certain points in time. The amount that women are paid has an effect but the pensions gap is also affected by career breaks or reducing work hours to care for children or others, as well as divorce and the menopause.
Can my partner pay into my pension if I take time off work?
Yes. Another person can usually contribute to your pension, subject to the pension provider’s rules and tax relief limits. Even if you have no earnings, up to £2,880 can normally be paid into your pension each tax year. The government adds tax relief, increasing the total contribution to £3,600.
How does maternity leave affect pension contributions?
During paid maternity leave, your own contributions are generally based on the pay you receive, while your employer's contributions are based on your usual salary.
Does working part-time affect my pension?
Yes. That's because workplace pensions are based on percentages. If you work part-time, you and your employer will pay less into your pension than if you worked full-time. It might also mean that some workers might not meet the earnings threshold for automatic enrolment.
How can I find out whether my pension is on track?
Start by reviewing your pension statements and State Pension forecast. You can then compare your projected retirement income with the amount you think you'll need in retirement.
