The gender pay gap is well known, but fewer people realise just how stark the gender pension gap is. Recent figures from the Department for Work and Pensions reveal that women in their late 50s have, on average, just £81,000 in private pensions. This is around 48% less than men of the same age, whose average stands at £156,000. That’s a difference of £75,000. Other studies put the long-term picture into even sharper focus. Research by Now: Pensions and the Pensions Policy Institute suggests that by the time women reach retirement age, their average pension wealth can be as much as 60% lower than men’s. This is not just a small gap, it’s a gulf that can have serious consequences for financial security in later life.
There is no single reason for the gender pension gap. Instead, it’s the result of a combination of economic, social, and policy factors:
Pay and career gaps: Women are more likely to work in lower-paid roles or sectors, and career breaks for childcare or elder care are still far more common among women than men. Less time in the workforce and lower salaries mean lower contributions over the years.
Auto-enrolment exclusions: Workplace pension auto-enrolment only applies to employees earning over £10,000 a year in a single job. Many women work part-time or hold multiple part-time jobs, meaning they miss out on this benefit entirely.
Longer lifespans: On average, women live around four years longer than men in the UK. This means they need a larger pension pot to sustain a comfortable retirement over a longer period.
Pension knowledge gap: Research shows that women are more likely to lack confidence when it comes to pensions and retirement planning, which can lead to disengagement from the topic altogether.
A smaller pension pot at retirement age does not just mean fewer luxuries - it can directly affect quality of life. Rising living costs, healthcare needs, and housing expenses all have to be met from a smaller savings base, and the State Pension alone often does not provide enough for a comfortable lifestyle. The gender pension gap is not simply a women’s issue. It affects families, communities, and the wider economy. If half the population retires with significantly less wealth, it increases the pressure on public services and reduces overall retirement security.
Pension App is designed to put the power back into your hands, helping you to get a clear view of your pension savings and take control. We know that transparency and accessibility are key to closing the gap.
With Pension App, you can:
Find and combine your pensions from previous jobs, so they’re easier to keep track of and manage in one place.
Track your pension’s performance daily, giving you full visibility over how your pot is doing over time.
Easily switch between our fund options: cautious, balanced, and adventurous, if you want to change your investment approach.
Stay informed and in control with a secure, simple platform designed for everyone, regardless of background or previous pension knowledge.
We believe that by making pension management accessible and straightforward, more people, especially those at risk of falling behind, can take steps towards a better retirement outcome.
With pensions, your capital is at risk.