Ways to close the gender pensions gap

The gender pensions gap is the difference between men’s and women’s average pension values.

For example, the average private pension value for women aged 55 to 59 between 2020 and 2022 was almost half as much as men the same age.

Women also typically live longer than men, so retirement savings often need to stretch further too.

This can mean women 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.

On average, women are paid less than men and are more likely to work part-time or take career breaks – including maternity leave and other time off for caring responsibilities.

This typically means:

• less is paid into a pension, or
• a pension might not be set up at all, if wages are lower than the automatic enrolment thresholds.

Most people also do not share their pensions after a break-up.

There are things you can do to increase your pension and retirement savings, which can help bridge the gender pensions gap. 

Understanding how your pension and money works can also pay, as you might be able to save tax, get extra money from your employer and increase your confidence in managing your finances.

Even if you’re many years away from retirement, it’s always a good idea to plan how much you might need to save.

You can use our Pension calculator to see:

• how much money you might need to fund your retirement
• an estimate of what you’re on track to get, based on your current savings. 

If you’re confident you will not have a mortgage or rent to pay in retirement, the Retirement Living StandardsOpens in a new window  also lists the annual income you might need to afford certain lifestyles. 

A pension lets you save over many years to give you money to live off when you’re older.  

Your savings are usually boosted by tax relief as you normally do not have to pay tax on income that you put into a pension.

All employers must offer a workplace pension scheme, but you might have to ask to join if you: 

• earn less than £10,000 a year from that job and/or 
• are under 22 or between State Pension ageOpens in a new window and 75.  

Your employer must also pay an extra amount into your pension if you earn over £6,240 a year from that job – they can choose to contribute if you earn less. These contributions must be at least 3% of your wages but can be much higher. 

If you can afford to, consider increasing your contributions. Depending on the type of pension you have, this will either: 

• buy you extra benefits or  
• be invested so it should grow over time.  

It’s also worth checking if your employer offers contribution matching. This means they will increase their pension contributions if you increase how much you pay in.

If you do not have an employer, or you’d like a separate scheme, you can choose to start your own pension.  

This usually means you can decide how much and how often to pay in – though you often cannot pay in more than: 

• the amount you earn and 
• the annual allowance, which is £60,000 for most. 

How much State Pension you’ll get depends on your National Insurance record.  

You can check your State Pension forecastOpens in a new window on GOV.UK to see how much you’re on track to get. 

If you won’t reach your State Pension ageOpens in a new window within 30 days, you can also: 

• call the Future Pension Centre helplineOpens in a new window 
• apply for a pension forecast by postOpens in a new window

If your forecast shows you might not qualify for the full amount, there are ways to increase your State Pension.

For example, you can usually claim free credits if you receive Statutory Maternity, Paternity or Adoption Pay or have cared for a family member’s child under the age of 12.  

You can also choose to pay to fill gaps in your record. This can mean you pay hundreds now to get thousands back in extra income later – depending on how long you live for. 

Sharing the responsibility for organising your finances can help make sure you both understand your situation, including your pensions, household bills, debts and savings.

You could ask yourselves:

• Do we both have workplace or personal pensions?
• How much does each of us pay into our pension each month?
• Have we kept track of old pensions?
• Have we kept our pension beneficiaries (someone you choose to receive your pension when you die) updated? 
• When will each of us reach State Pension age?
• What do we want our retirement to look like?

This helps everyone know how much money is coming in, how much is being spent and how much you can afford to save – including if either of you are able to increase your pension contributions. 

You might also spot if one of you is less confident about money than the other or has higher debts or savings to consider.

Our free and easy-to-use online Budget planner can help you work through everything together. For more help, see our guide Talking to your partner about money.

If one of you has taken a career break, reduced your hours or has a lower paid job, you could consider using some of the higher earner’s income to pay into the other person’s pension. This could be a one-off payment or regular contributions. 

For example, if your pension contributions stopped or reduced while you were on parental leave, you could calculate how much less you saved and use your household income to top this up.    

If the lower earner has: 

• a workplace pension, they could increase their contributions and use the higher earner’s income in other ways – like paying a higher share of a household bill 
• a pension they set up themselves, the higher earner can usually pay directly into it. 

For example, even if your partner hasn’t paid any money into your pension, they might have done other things so you could work and contribute – like reducing their hours to look after family. 

There are a few different ways you can share pensions after a separation. You do not have to divide them equally. For example, you could: 

• transfer all or part of a pension to the other person 
• give the other person a share of the income when the pension starts paying out 
• keep the pension but divide other money and property differently.

A report of women with a health condition or disability by the Department for Health and Social Care found:

• 3 in 4 women said their health condition or disability increased their stress levels 
• 2 in 3 said it had impacted their mental health 
• 1 in 4 said it impacted their earnings and opportunities for promotion 
• 1 in 5 said it meant they had to stop work earlier than planned. 

If you’re disabled or have a health condition, your employer must make ‘reasonable adjustments’ so you’re not disadvantaged at work.  

If you have caring commitments outside of work, you could also ask your employer about flexible working or other changes.

For example, you could ask to change: 

• the hours you work 
• where you work from 
• the equipment you need to do your job.  

Staying in your job might also mean you can continue saving into your pension, so you should have more money when you retire. 

For free and confidential employment law advice: 

• in England, Scotland or Wales, you can contact AcasOpens in a new window 
• in Northern Ireland, you can contact the Labour Relations AgencyOpens in a new window

It’s illegal for your employer to treat you differently due to certain characteristics, including your age and gender. 

For example:

• you’re not offered the same training or promotion opportunities as younger colleagues
• symptoms of the menopause are not considered when reviewing your performance against other colleagues.  

If you experience any disadvantages due to a protected characteristic and they won’t agree to put things right, you might be able to take your employer to a tribunal. 

For more information, see: 

• Menopause and the lawOpens in a new window on ACAS 
• Ageism at workOpens in a new window on Age UK.