What is the gender pensions gap and why does it exist?

The latest government data reveals the average private pension value for people aged 55 to 59 between 2020 and 2022 was: 

• £156,000 for men 
• £81,000 for women – almost half as much. 

If this was all converted into guaranteed regular income at retirement (called buying an annuity), this would pay around:  

• £11,000 a year for men 
• £6,000 a year for women – £5,000 a year less. 

Women typically live longer than men, so retirement savings often need to stretch further. This can also mean annuities that guarantee an income for life pay a lower rate for women than for men.  

For example, the average life expectancy for a 55-year-old is: 

• 84 for men 
• 87 for women.  

This is based on the Life expectancy calculatorOpens in a new window from the Office for National Statistics. 

This means women might have to: 

• live off a lower annual income to avoid running out of money 
• continue working for longer 
• rely on the State Pension and other benefits for an income 
• experience poverty in later life. 

There are many different reasons why there’s a gender pensions gap, including the gender pay gap – where, on average, women earn less than men. 

The gender pay gap is the difference between the average pay received by men and women. 

For example, data from the Office of National Statistics shows that the average hourly pay for full-time employees in April 2024 was: 

• £19.24 for men 
• £17.88 for women – £1.36 an hour or around £2,650 a year less.  

The gap increases between men and women who work in skilled trades or are aged over 40.  

Women are more likely to take on caring responsibilities for the family or home – sometimes working part-time hours or taking career breaks and maternity leave. These commitments might also mean women miss out on promotions.  

Women’s health can also play a role, with data from the Office for National Statistics (ONS) showing women had more sick days than menOpens in a new window in all age brackets during 2024. This can have a significant impact on your pension if you’re paid by the hour or your employer only offers Statutory Sick Pay.  

Pension contributions are often calculated as a portion of your wages each month, such as 5%. This means less will be saved into a pension if you have lower pay – or none at all during an unpaid career break.  

If you set up your own pension, you can usually choose how much and how often to save. If your income drops, you might not be able to afford to continue contributing or need to adjust how much you pay in. 

Low wages might also mean: 

• a pension is not set up for you automatically 
• your employer does not pay an extra contribution into your pension. 

For pension auto-enrolment to start, you usually need to earn at least £192 a week, £833 a month or £10,000 a year and be between age 22 and the State Pension ageOpens in a new window

If you do not qualify for auto-enrolment and earn less than £120 a week, £520 a month or £6,240 a year, your employer does not have to pay into your pension – unless they choose to. This means you might miss out on contributions worth at least 3% of your wages.  

Most people do not include their pensions when deciding how to split their money and property after a relationship breakdown.  

This means each person keeps their full pensions. But, as men’s pensions are typically much higher than women’s, women in relationships with men can lose out. 

Even if a pension is included, many do not understand how valuable it is. For example, they might agree to keep the home if the other keeps their pension – but the pension might be worth a lot more than the home. 

The State Pension age has been the same for all men and women since November 2018. This is the earliest anyone can claim the State Pension. 

Before this, women could claim the State Pension up to five years earlier than men. This often meant women stopped working before men, so they had less time to save into a private pension. 

For steps you can take to help close the gender pensions gap, see our guide Ways to close the gender pensions gap.