Women are saving more—but the pension gap is growing.

UK pension contributions rose last year. But women’s savings are still falling dangerously behind, according to Pension Bee.

Apr 27, 2025

Despite inflation and rising living costs, UK savers managed to boost their pension contributions in 2024, according to analysis by PensionBee.

Average annual contributions climbed by £285 to £1,477.
Men’s contributions jumped 23% (£316); women’s rose 18% (£174).
But the gender gap in contributions widened to 44%, up from 37% last year.

But here’s the real problem:

The system still isn’t built for women’s realities - career breaks, part-time work, lower pay and longer lives.

At retirement:

Women aged 55–64 hold just 46% of the private pension wealth men have.
Median pension pots? £57,500 for women vs. £125,000 for men.

Global perspective:

UK pension gap: 35% — projected to take 90 years to close.
EU average: 26–29% pension gap across member states.
US retirement income gap: 32.6% for women aged 65+, and men’s 401(k)s are 50% larger on average.

Lisa Picardo, Chief Business Officer at PensionBee, said:

“The pensions industry still has a long way to go in enabling this, by making its products, content and tools more accessible and transparent to all savers, regardless of gender. PensionBee is committed to closing the retirement savings gap.
In addition to making pensions simpler and more accessible, we’ve partnered with a range of female-focused organisations to provide tailored financial education to women and minority gender groups to broaden our reach. Our vision of a world where everyone enjoys a happy retirement is only possible if no one is left behind.”

Why it matters

This isn’t just about savings.

It’s about who gets to retire with dignity—and who doesn’t.

Without significant changes, millions of women will age into poverty despite doing everything right.

UK: Over 2 million pensioners are living in poverty, with 23% of single older women affected—far more than couples.
US: 10.5% of women aged 65+ live in poverty, compared to 8.9% of men—and nearly 19% of older Black and Latina women are impacted.
EU: 20% of women aged 65+ are at risk of poverty, compared to 14% of men.

This is a global issue. And the gender pension gap is (shockingly) a pipeline to poverty for millions of women.

Closing it isn’t optional—it’s urgent.

The bottom line

Women are saving more, working longer, and planning earlier for retirement.
But the system still isn't working for them.

Closing the gender pension gap isn’t just about fairness.
It’s an economic necessity—essential to building financial resilience, unlocking growth, and ensuring prosperity is shared more widely.

If we want a future where everyone can retire with dignity, we need a system that reflects the realities of women's working lives:

the gender pay gap
careers with breaks
part-time work
longer life expectancy.

That means action now—on pay equity, flexible pension design, targeted support for carers, and better financial education throughout women's lives.

Because until the system evolves, millions will continue to do everything right—and still end up with less.

Every year we delay closing the gap, more women pay the price—with their security, their independence, and their future.

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and janicka. We do no provide investment advice. Please do your own research or speak to a financial adviser. Image generated by AI for The Purse Ltd.

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