Women and money: understanding the gender pension gap

DWP's Gender Pensions Gap in Private Pensions publication measures the difference between median male and female uncrystallised private pension wealth for people aged 55–59, close to the earliest age pensions can usually be accessed. For 2020 to 2022, that gap was 48%.^[9]

In cash terms, analysis of this DWP data found median private pension wealth around £81,000 for women in this age band compared with £156,000 for men.^[10]

The gap varies by pension type: DWP-based analysis found around 39% for defined benefit pensions, but around 75% for people who only hold defined contribution pensions — the type most private sector workers now have.^[10]

DWP notes that automatic enrolment has largely equalised workplace pension participation between men and women — most eligible women now save into a workplace pension just as men do. The gap is about pension wealth built up over a working life, not whether women save at all.

Career breaks for childcare or caring, part-time working, and the gender pay gap all reduce the pension contributions — both the employee's and the employer's matching contribution — that build up over time, and these effects compound over decades.

The introduction of the flat-rate new State Pension in 2016 has reduced the gap specifically in State Pension income, though this report focuses on private pensions, not the State Pension.

If you've had a career break, check whether you were claiming Child Benefit during it — this normally gives you National Insurance credits towards your State Pension even if you weren't earning, but only if you were claiming (or claimed credits directly).

If you returned to work part-time, check your workplace pension contributions didn't quietly drop below the auto-enrolment threshold, and consider asking whether you can increase contributions when your budget allows.

If you're self-employed or your employer doesn't offer a scheme, you can still contribute to a personal pension and may get tax relief — check current limits on GOV.UK.

Get a State Pension forecast and pension statements for every pension you've ever had, including small, old workplace pensions — consider using the free government Pension Tracing Service to find any you've lost touch with.

If you have a partner, have an open conversation about who is building pension wealth and whether that feels fair given unpaid caring work.

Ask your employer's HR team about matched contributions — any match you're not claiming is money left on the table.