Our recent research found:
• Men have nearly double the pension savings of women, with average pots of £92,000 compared to £39,000 for women.
• Personal asset gaps are similarly stark. Men have assets of £145,000 on average, vs. £79,000 for women.
• Single and divorced individuals are particularly vulnerable, with average pension pots of £30,500 and £39,500 respectively - well below the £97,000 average for married individuals.
• Confidence in managing pensions is also gendered: 29% of women say they feel confident in combining or transferring pensions, compared to 44% of men who say they feel confident.
Sarah Pennells, consumer finance specialist at Royal London, said: “It’s deeply concerning that for every £1 a man has saved towards his pension, a woman has just 42p – this isn't just a statistic; it’s a glaring inequality. Women typically retire with far less in their pension pots than men, and that’s no accident. It’s the result of lower average earnings, time out of the workforce for caring responsibilities, career breaks, and part-time work.
"It’s encouraging to see a continued focus on how the Government plans to support growth and reduce inequality. The upcoming second phase of the Government’s Pensions Review presents a valuable opportunity to explore a range of issues affecting retirement outcomes, including the gender pensions gap. While any proposals may take time to implement, the review can help lay the foundations for long-term improvements in the pension system.
“In the meantime, there are steps that employers can take, such as ensuring that there are equal opportunities for career progression, reminding employees of the full range of workplace benefits available, promoting career progression, offering flexible working policies where possible and providing training for managers and employees. This training could cover menopause and how to create a supportive environment so women experiencing symptoms don’t feel they have little choice but to reduce their hours or leave their job entirely.
“We need to move beyond simply encouraging people to save more and make the system work better for everyone. That means addressing the structural barriers that hold women back from building up their pensions. Reforming automatic enrolment is a key step, bringing more low-paid and part-time workers, many of whom are women, into workplace pensions. We also need to look at how childcare costs and caring responsibilities affect a woman’s ability to save and ensure that policies reflect the realities of modern working lives.”
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