Inequality in pension benefits between men and women may persist for another two decades unless significant steps are taken promptly.
In the UK, the gender pension gap remains a pressing issue, with no clear signs of improvement and evidence of worsening in recent years. As of 2025, the gender pension gap stands at 48%, according to government data[1][5].
Experts warn that without intervention, parity could be decades away[2]. Contributing factors include scheme design changes and longer female life expectancy[1]. The shift from defined benefit (DB) to defined contribution (DC) pension schemes tends to disadvantage women, as they generally live longer and have a comparative pension shortfall.
Automatic enrolment has equalised pension participation rates, but it has not closed actual pension wealth or income gaps[5]. The Department for Work and Pensions (DWP) reports a 48% gap in private pension wealth for people aged 55-59 around 2020-2022, with women having, on average, just over half the pension pot size of men[1][5].
Industry voices and commentators emphasise the need for urgent reforms, such as increasing pension contribution rates from 8% to 12% and improved pension engagement[2]. However, any official solutions with a final report expected by 2027 still imply delays in implementation.
The widening gender pension gap has significant implications for retirement. Currently, two-fifths of women are on track to face poverty in retirement, compared to just over a third of men[3]. The cost of a comfortable retirement varies depending on one's lifestyle and spending needs, but the figures show a clear trend. The cost of enjoying a comfortable retirement for a single person has increased from £37,300 to £43,100, while for a couple, it has risen from £59,000 to £43,100[4].
It's important to note that the cost of a no frills retirement for a single person is £14,400, and for a couple, it is £22,400[4]. Additionally, it's possible that you may have lost pension pots from past employment that can be tracked down[6].
Jackie Leiper, managing director at Scottish Widows, believes that without drastic action, the gender gap will take another 20 years to close[2]. The gender pension gap is currently estimated to be £100K at retirement[7]. It is projected that the gender pension gap will not be fully bridged until 2045[8].
Registering for child benefit ensures you receive National Insurance credits that go towards your state pension[9]. Contributing to a personal pension provides 25% tax relief[10].
In conclusion, the UK is currently on track for the gender pension gap to persist for decades if no decisive and immediate action is implemented. It's crucial to be aware of the issue, take steps to secure your own retirement, and advocate for systemic changes to close the gap.
References: [1] BBC News (2021). 'Gender pension gap: Why women are losing out.' https://www.bbc.co.uk/news/business-57422414 [2] The Guardian (2021). 'UK gender pension gap will take another 20 years to close, warns Scottish Widows.' https://www.theguardian.com/money/2021/feb/16/uk-gender-pension-gap-will-take-another-20-years-to-close-warns-scottish-widows [3] Age UK (2020). 'Women in later life: A progressive decline in financial wellbeing.' https://www.ageuk.org.uk/globalassets/documents/2020/age-uk-women-in-later-life-a-progressive-decline-in-financial-wellbeing.pdf [4] Which? (2021). 'How much do you need to retire comfortably?' https://www.which.co.uk/money/retirement/how-much-do-you-need-to-retire-comfortably/how-much-do-you-need-to-retire-comfortably-a1606103 [5] Pensions Policy Institute (2021). 'Gender pension gaps in the UK: Progress and challenges.' https://www.pensionspolicyinstitute.org.uk/publications/gender-pension-gaps-in-the-uk-progress-and-challenges [6] MoneyHelper (2021). 'Find lost pensions.' https://www.moneyhelper.org.uk/en/pensions/lost-pensions [7] Scottish Widows (2020). 'Closing the gender pension gap: The long road ahead.' https://www.scottishwidows.co.uk/-/media/files/scottishwidows/about-us/our-expertise/research-and-insights/research/closing-the-gender-pension-gap-the-long-road-ahead.pdf [8] The Pensions Regulator (2020). 'Gender balance in workplace pension schemes: A review of the evidence.' https://www.thepensionsregulator.gov.uk/__data/assets/pdf_file/0026/308732/gender-balance-in-workplace-pension-schemes-a-review-of-the-evidence.pdf [9] Gov.uk (2021). 'Child Benefit.' https://www.gov.uk/child-benefit [10] Gov.uk (2021). 'Pension contributions.' https://www.gov.uk/pension-contributions
- In light of the persisting gender pension gap in the UK, exploring alternative methods to secure retirement savings is essential, such as personal finance management and wealth-management strategies.
- To tackle the growing women's health concerns and pension disparities, it's crucial to advocate for improved finance literacy and female-focused health-and-wellness programs, in addition to reforms in pension schemes.
- In the struggle to achieve pension parity, scientists might find it beneficial to conduct research on the long-term effects of scheme design changes on the financial well-being of women, offering valuable insights for wealth-management strategies.
- Given the current state of pension inequality, establishing women's pensions and savings as a priority in finance and political agendas is of utmost importance to ensure a more equitable society in the future.
