ATTIVO
The gender pension gap: why does it exist?
Women and Pensions – Part 1
In celebration of International Women’s Day – and its theme “Give to Gain” – we’re giving expert insights into Women and Pensions; in particular, the gender pension gap. In this article – the first of a two-part series – Nadine Perry, Associate Director at Attivo, discusses why there such a disparity in pensions between men and women. Keep an eye out for Part 2, where you can gain insights on how to close the gap.
Words by Ally Oliver
The gender pension gap in the UK is very real.
A 2022 survey by the Women’s Budget Group found that, on average, men hold £155,000 in private pension wealth, whilst women have £88,000. The UK has the largest gender pension gap in the Organisation for Economic Co-operation and Development (OECD), which has 38 member countries. Among those with no private pension provision at all, 58% are women.
Given that the official UK retirement age for women is set to rise to 68 by 2044 and the state pension for most people will not provide a ‘comfortable’ way of life (as of February 2026, the UK’s full state pension is £12,500 a year), it’s time to take action.
Attivo Associate Director Nadine Perry feels passionately that women must arm themselves with the right information and professional advice to ensure they have the retirement they deserve.
“The responsibility for a comfortable retirement lies with all of us – and I’d encourage women to plan, even if you’re at the stage of heading into the workplace for the first time.
“Women tend to be slightly more cautious than men when looking at investment risk (although research has frequently found that they make better long-term investment decisions), and it’s my job to explain that a slightly higher risk with pension funds in their 20s, 30s or 40s can make a dramatic difference to the long-term outlook for their pension – it can transform your retirement.”
Why do women have smaller private pensions than men?
It isn’t that women aren’t paying into their pensions, but there are barriers to building up a significant pot for retirement, all of which affect women disproportionately:
1. “The motherhood penalty”
Career breaks to care for children or other relatives stop women contributing to their workplace pensions. They often return to part-time work after having children, or out of necessity if they have other caring responsibilities.
2. Lower earnings
On average, women’s hourly rate is still less than men’s. Lower salaries mean less is being paid into pensions.
3. Auto enrolment barrier
Whilst employees are automatically enrolled into a pension, they must earn at least £10,000. See above re lower earnings.
4. Divorce and pension sharing
Pensions are often not shared equally during divorce, which means women will be left significantly worse off in later life.
“I’m passionate about educating my clients about how to provide for their future.”
Nadine is a Chartered Financial Planner. She has worked in Financial Services for over 30 years and joined Attivo in 2024. Nadine is a Fellow of the Personal Finance Society (PFS), is part of the Chartered Insurance Institute (CII) and has been listed in VouchedFor’s Top Rated Financial Adviser Guide for six years.
“I could give you myriad examples of an imbalance in (married) couples’ pensions; it happens all the time,” says Nadine. “Approaching retirement, the husband may have over £1m, and the wife has, say, £170k.
“This situation is especially evident among couples in their seventies and eighties because, when these women were growing up, it was always assumed they would marry, often giving up work to raise children,” Nadine continues. “It was expected that the husband would support his wife financially throughout their marriage.
“Clearly, times have changed dramatically. In the early nineties, women’s employment rates were around 55%, whereas by 2024 this had risen to 71.8%. Now, women have far more agency over their careers and finances.
“In my own case, my parents weren’t keen on my going to university; they wanted me to get an admin job and thought I’d be married with children by the age of about twenty. But things had shifted; I had aspirations to have my own career, and I went to university (I do have children, and I am married, but it was quite a bit later on)!
“I talk to my two daughters about money in an entirely different way than the way my parents talked to me, and I’m passionate about educating my clients about how to provide for their future, and helping them to understand the importance of pension planning, no matter how many curveballs life throws at us.
“What I notice is that for men and women, until children come along, the finances are pretty balanced. Things tend to change (and this is general, there are exceptions) when the women take time off to have children and then go back to work part-time or have a career break for a few years when the children are small.”
What can be done about the gender pension gap?
Keep an eye out for Part 2 of our Women and Pensions series, where Nadine will dive into the steps you can take to help close the gender pension gap.
Looking for advice on your pension?
At Attivo, our goal is to align your financial objectives with your lifestyle aspirations, ensuring that when you decide to retire, you can enjoy the life you choose.
Arrange your free, no-obligation consultation with us today and see how we could support you.
This article is provided for information purposes only and does not constitute a personal recommendation. Any decision to invest should be made in the context of your individual circumstances and financial objectives. The value of investments and any income from them can fall as well as rise, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future. Information is based on our understanding of current taxation legislation and regulations.