The Gender Pension Gap: A Crisis for Women

When we talk about financial inequality, the gender pay gap usually grabs the headlines. But there's another, quieter crisis building beneath the surface: the gender pension gap—and it's arguably even more damaging in the long term.

A Shocking 48% Gap

Recent figures show that the gender pension gap in the UK now sits at 48%. That means, on average, a woman’s pension pot is nearly half the size of a man’s by retirement age.

This isn't just about money. It's about security, independence, and dignity in later life.

Why the Gap Exists

The reasons behind the pension gap aren’t surprising—but they are deeply entrenched in societal norms:

• Career breaks for caregiving: Women are far more likely to take time out of work to care for children, elderly relatives, or both.

• Part-time work: Around 75% of part-time roles in the UK are held by women. These roles often come with lower wages and reduced access to pension schemes.

• Lower lifetime earnings: Even when in full-time work, the gender pay gap persists. Lower earnings mean lower pension contributions—both personal and employer-matched.

• Auto-enrolment thresholds: You must earn at least £10,000 annually from a single job to qualify for automatic pension enrolment. Many women hold multiple lower-paid jobs and miss out completely.

The Cost of Living Longer

Women typically live four years longer than men, meaning they need their (already smaller) pension pots to stretch further. Combine that with rising care costs and inflation, and it’s no surprise that 1 in 5 women in the UK live in poverty in retirement.

For single women, divorced women, or those who have not accumulated assets with a partner, the risks are even higher.

A Lack of Education—and Visibility

There’s a widespread lack of clear, practical education around what retirement actually looks like. What does a decent pension pot look like? How much should you be saving by your 30s or 40s? What if you’ve had a break in contributions—or haven’t started saving at all?

Financial jargon, outdated advice, and an over-reliance on the “default” workplace pension pathway leave too many women feeling overwhelmed or disengaged. And crucially, pension planning is often left too late.

What Can Be Done?

This isn’t just a personal problem—it’s a systemic one. But there are ways to take back some control:

• Check your state pension forecast via gov.uk to see where you stand.

• Make voluntary National Insurance contributions if you have gaps—especially if you’ve taken time out to raise children.

• Consider pension top-ups if you’re working part-time.

• Include pensions in divorce settlements—pensions are often the biggest asset after a home, but frequently overlooked.

• Push for better education and visibility—from school onwards.

The Bottom Line

This isn’t just about numbers. It’s about freedom in later life, the ability to make choices, to age with security—and to avoid dependence or poverty.

It’s time we shine a light on this crisis. Because the pension gap isn’t just a retirement issue—it’s a women’s rights issue.