While the gender pay gap is widely discussed, the gender pensions gap often receives far less attention, despite its potentially greater long-term impact on financial security.

In the UK, women typically retire with significantly less pension wealth than men. Research consistently shows that this gap can be substantial, with some estimates suggesting women’s private pension savings at retirement are around a third lower than those of their male counterparts. The reasons for this are complex, but they are rarely the result of poor financial decision-making alone.

Instead, they tend to reflect structural differences in working patterns, caring responsibilities and lifetime earnings.

Women are more likely to take career breaks, work part-time or move into lower-paid roles at various stages of their lives. This often coincides with key pension-building years, meaning contributions are reduced at the very point where long-term compounding would otherwise have the greatest effect.

Auto-enrolment has improved pension participation across the workforce, but it has not eliminated these disparities. Contribution levels remain linked to earnings, and periods of reduced income or time out of employment can lead to lasting shortfalls in retirement provision.

To illustrate this, consider two hypothetical employees who begin their careers earning similar salaries in their mid-twenties.

Both are automatically enrolled into their workplace pension schemes and contribute consistently for the first ten years of their working lives. In their mid-thirties, one employee takes several years away from full-time employment to care for children, later returning to work on a part-time basis for a further period. Although contributions eventually resume, they are often based on reduced earnings.

Over time, the cumulative impact of these interruptions, even if relatively short, can translate into a meaningful difference in total pension savings by retirement age.

In another example, an individual working part-time throughout much of their career may fall below the qualifying earnings threshold for auto-enrolment in certain roles, resulting in missed contributions altogether unless proactive steps are taken.

Alongside contribution gaps, confidence also plays an important role.

Studies have suggested that women are, on average, less likely to engage with investment decisions or seek financial advice early in their careers. This can lead to lower levels of investment risk being taken within pension portfolios, or a preference for holding cash savings instead of long-term investments, both of which may limit potential growth over time.

Financial advice can provide valuable support in addressing these challenges.

Advisers are able to help clients understand how career breaks or part-time employment may affect long-term retirement outcomes and explore strategies to mitigate these effects where possible. This may include reviewing contribution levels following a return to work, making use of pension carry forward rules, or adjusting investment strategies to better reflect long-term objectives.

In households where partners have differing earnings, financial planning can also help ensure that pension provision is considered collectively. For example, it may be appropriate in some circumstances for higher earners to make pension contributions on behalf of a lower-earning spouse or partner, helping to balance retirement savings more evenly over time.

Advisers can also provide guidance during key life stages, such as maternity leave, divorce or career changes, when pension planning may otherwise be deprioritised. These transition points often present opportunities to reassess long-term goals and ensure that retirement strategies remain aligned with evolving circumstances.

Importantly, professional advice can improve understanding and confidence in financial decision-making more broadly. By providing clarity around investment risk, tax allowances and income planning, advisers can support greater engagement with pension saving and long-term financial planning.

Closing the gender pensions gap is unlikely to be achieved through policy changes alone. Individual planning decisions, particularly those made at key stages throughout a working life, will continue to play a central role in determining retirement outcomes.

Financial advice offers a structured approach to navigating these decisions, helping to address contribution gaps, manage investment risk appropriately and support more balanced retirement provision over time.

At iPensions Wealth, David works with individuals and families to review pension arrangements in the context of wider financial planning: supporting clients in understanding how career patterns, contribution levels and long-term objectives may affect retirement income, and identifying practical steps to help strengthen financial resilience for the future.

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