Specialists reveal the important thing causes behind rising pensions gender hole

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Your help makes all of the distinction. Learn extra The projected monetary hole between women and men’s non-public pensions at retirement has grown since final yr, a brand new report has revealed.

Scottish Widows estimates ladies are set to retire with a median non-public pension wealth of £173,000.

This determine stands £113,000 decrease than the typical of £286,000 projected for males.

This widening disparity marks a rise from the £100,000 gender hole in non-public pensions calculated at retirement simply twelve months in the past.

Scottish Widows estimated folks’s retirement incomes primarily based on their present wealth, their financial savings behaviour and a few assumptions about elements corresponding to how their earnings is predicted to develop by means of their working life, and when they are going to retire.

With ladies typically taking over caring obligations, the analysis additionally indicated that greater than half (58 per cent) of ladies at or close to retirement have taken a profession break, in contrast with 12 per cent of males.

It additionally discovered that two-fifths (40 per cent) of ladies didn't plan financially for his or her profession break, and greater than half (56 per cent) by no means thought-about the affect it will have on their retirement.

<img src="https://static.independent.co.uk/2025/10/20/13/21/iStock-2165033689.jpg" srcset="https://static.independent.co.uk/2025/10/20/13/21/iStock-2165033689.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/10/20/13/21/iStock-2165033689.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Women who had taken a career break were also more likely than men to say that it had reduced their ability to save, the report found" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Ladies who had taken a profession break have been additionally extra seemingly than males to say that it had decreased their means to avoid wasting, the report discovered (Getty/iStock) The report stated that whereas childcare is the “standout rationalization” for profession breaks, well being and the menopause additionally play a job.

Ladies who had taken a profession break have been additionally extra seemingly than males to say that it had decreased their means to avoid wasting, the report discovered.

Ladies have been additionally discovered to be extra prone to fall wanting even a minimal way of life in retirement, with 36 per cent estimated to be not on monitor, in contrast with 31 per cent of males.

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The forecast is benchmarked to a set of “retirement dwelling requirements” set out by trade physique Pensions UK.

Susan Hope, a retirement knowledgeable at Scottish Widows, stated: “To realize true equality in retirement, we'd like to ensure profession breaks don’t break ladies’s future monetary safety.

“There are a few easy methods to assist deal with these gender pension considerations.

“We have to enhance consciousness and take-up of shared parental go away insurance policies.”

She added: “Individually, spouses needs to be actively saving into ladies’s pensions throughout any profession breaks, if potential.

“That is also referred to as third-party contributions and, whereas typically missed, is a useful monetary planning instrument.

“Not solely can it maximise tax reduction for individuals who have used up their allowance, this may help to plug gaps in pension contributions whereas incomes energy is restricted.

<img src="https://static.independent.co.uk/2025/11/12/12/4d40e4cf4e6be5b7340c138cdbb029fbY29udGVudHNlYXJjaGFwaSwxNzYzMDM3NDIy-2.78681936.jpg" srcset="https://static.independent.co.uk/2025/11/12/12/4d40e4cf4e6be5b7340c138cdbb029fbY29udGVudHNlYXJjaGFwaSwxNzYzMDM3NDIy-2.78681936.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/11/12/12/4d40e4cf4e6be5b7340c138cdbb029fbY29udGVudHNlYXJjaGFwaSwxNzYzMDM3NDIy-2.78681936.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Two-fifths (40 per cent) of women did not plan financially for their career break, and more than half (56 per cent) never considered the impact it would have on their retirement" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Two-fifths (40 per cent) of ladies didn't plan financially for his or her profession break, and greater than half (56 per cent) by no means thought-about the affect it will have on their retirement (Lucy North/PA) “Employers additionally proceed to play an essential function in pension contributions throughout maternity go away.

“Thankfully for ladies, employer contributions in a office scheme are sometimes calculated primarily based on their pre-leave wage.”

YouGov carried out a survey of greater than 4,000 folks in August and September and a survey of greater than 5,100 folks in January and February throughout the UK for Scottish Widows.

Helen Morrissey, head of retirement evaluation at Hargreaves Lansdown stated: “Ladies are paying an enormous worth for shouldering the vast majority of caring obligations on the subject of their pensions.

“A mixture of decrease wages, part-time work and dealing gaps all conspire to make the gender pension hole a yawning chasm and there’s little or no ladies can do about it with out office reform to assist them keep within the workforce.

“This will embody the availability of fine high quality inexpensive childcare and extra versatile working that can allow them to stability caring and work obligations extra simply.

“It additionally reveals the large affect that menopause can have on ladies’s retirement prospects. At a time once they is likely to be able to start out rebuilding their long-term resilience after trip of the workforce and decrease wages, menopause has the potential to trigger additional harm.

“Once more, a extra versatile strategy to working patterns might be a gamechanger in serving to ladies navigate this difficult time and construct their monetary resilience.”