Personal & Workplace Pensions

Pension gap between men and women could increase to £100,000

Research from Scottish Widows has highlighted the already significant gender pension gap is set to widen even further in the coming years. Data suggests that women save only two-thirds of the amount that men do towards their pension, which leads to a massive shortfall later. With other recent studies also highlighting issues surrounding a lack of pension savings across both genders, is it time for everyone to start looking towards retirement?

 - 3 Min Read
Last updated and fact checked:
Pension gap between men and women could increase to £100,000
Editorial Note: We earn a commission from partner links on Pension Times. Commissions do not affect our writers’ or editors’ opinions or evaluations. Read our full affiliate disclosure here.

Show Pension Calculator


It has been revealed that the pension gap between men and women is set to widen to a staggering £100,000. According to research from Scottish Widows, this would mean that women in their 20s would have to work for an additional four decades if they want to close the huge gap in their pension pots by the time they retire.

Historically, women have always had poorer pension prospects than men for a variety of reasons. As this article highlights, it can be down to taking off time to raise a family, moving to part-time hours, and working in lower-paid industries, among other things. However, historically, this gender pension gap has always been an issue even without other factors being considered and will worsen, according to officials.

Maximise your retirement fund with our panel of pension providers. Click on your chosen provider to get started!

Wage increases lead to inequalities

According to government officials, several reforms brought in over the years have made it easier for women to build up their pensions. The DWP said that one of the measures that had helped was automatic enrolment , which had resulted in more women joining pensions schemes for the first time in their lives.

Data shows that during the first 15 years of working, women save on average around £2,200 per year toward their pensions. This compares to an average of £3,300 for men.

While the gap may not seem all that huge to start with, experts said it increases over a lifetime of working. This is because increases in wages lead to what was described as "significant inequalities in retirement income".

A senior official from Scottish Widows, Jackie Leiper, said, "We know that young women have been some of the hardest hit by the short-term financial impact of the pandemic and this has only exacerbated the challenge of reaching pensions parity. At the same time, caring responsibilities and high childcare costs are keeping women out of the workforce, lowering their contributions and denting their pension pots."

Closing the gap

One of the ways in which women can help to close the gap, according to pension experts, is to increase their contributions as early on as they can. By raising them by 5% when they begin working, the gap could be closed almost entirely by the time their retirement rolls around.

However, for those who continue with standard contributions throughout their working lives, the gap could become increasingly significant.

Image Credit: PiggyBank at Unsplash

The content on is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial advisor. Any references to products, offers, rates and services from third parties advertised are served by those third parties and are subject to change. We may have financial relationships with some of the companies mentioned on this website. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors
See More