Men end up with almost four times as much in their pension pots by the age of 60, according to official figures.

But the gulf between men and women’s pensions boils down to ‘entrenched systemic barriers’ rather than a lack of financial confidence, a new report claims.

Men hold a median total of £75,000 in defined contribution pension pots just ahead of reaching 60, compared to £19,000 for women, figures from the Department for Work and Pensions published last July showed.

Its data showed means the typical man aged 55 to 59 has a staggering 394 per cent more in invested pension pots than the average woman of the same age – making their retirement savings almost four times the size.

The gap narrows when defined benefit pensions – commonly known as final salary or career average schemes – are included, but men are still way ahead.

Men’s median combined defined contribution and defined benefit pension wealth at 55 to 59 is £323,000, more than double the £154,000 attributed to the typical woman.

Among the 15million people not saving enough for retirement in Britain, women are disproportionately affected, the DWP added.

New analysis this week from the University of Edinburgh supported by Evelyn Partners looks at why this happens and claims debate around the issue of a ‘lack of financial confidence’ among women saving for retirement is misguided.

The private pensions gap has increased from 35 per cent to 48 per cent in recent years, the analysis claimed.

The gulf has emerged despite the fact women typically contribute a similar proportion of their earnings to pension pots than men, the report added.

The report claimed the financial sector should instead focus on the ‘hidden systemic, social and situational factors’ preventing many women from planning and saving for retirement.

The publication flagged ‘time scarcity and high mental load’ among women.

The report said a ‘pensions timebomb’ was on the cards if the financial sector continued its current approach, bearing in mind it found that 60 per cent of women had no financial plan for retirement in place.

A slew of factors, ranging from lower pay, employment gaps and part-time work to taking on unpaid care for relatives and ‘gender stereotypes’, all play a role in the gulf between men and women’s private pension pots as they near retirement, according to the analysis.

The report’s author, Emily Shipp, a psychologist and associate of the Edinburgh Futures Institute, said: ‘Mental load and time scarcity operate together.

‘Women are more likely to carry the ongoing cognitive labour of anticipating and coordinating care, while also spending significantly more time on unpaid work.

‘These pressures reduce both the mental bandwidth and the available time needed for sustained engagement with long-term financial planning.’

The report noted that women in Britain typically spend over three and a half hours a day doing unpaid work.

It said that ‘where women appear disengaged with long-term financial planning, this instead may be the predictable consequence of over-loaded present contexts.’

Tobi Schneider, fintech sector lead at Edinburgh Innovations , said: ‘With an ageing population, without action, we are sleepwalking into financial disaster for a large proportion of people.’

Meanwhile, Emma Sterland, chief financial planning officer at Evelyn Partners, said the report shone a light on the ‘complex barriers that women face as they build their financial security over a lifetime.’

Another factor flagged in the report affecting both men and women, is that most people add money to defined contribution rather than more lucrative final salary pension schemes. The move away from final salary pension schemes has shifted the risks involved from employers to workers.

People are also living longer and often have more varied working lives, often involving career breaks, caring duties, retraining and a phased retirement.

‘It’s no longer enough to “set and forget” – active engagement and deliberate financial decision-making is needed’, the report said.

It added: ‘Firms must shift to contextually informed and psychologically attuned approaches.’

The report said initiatives such as pension credits for carers and pension products aimed at part-time work could help narrow the private pension pot gap.

Lisa Picardo, chief business officer UK at PensionBee, told This is Money: ‘To help narrow the gap, women can take proactive steps where possible, such as increasing contributions after pay rises, making full use of employer contributions and salary sacrifice, making contributions out of household earnings when facing gaps in work due to caring responsibilities, and actively boosting pension saving during higher-earning periods.

‘However, lasting progress will require coordinated action from employers, policymakers and the pensions industry to better support women’s retirement outcomes and prevent today’s contribution gaps becoming tomorrow’s retirement shortfalls.’

How big is the state pension gender gap?
The state pension gender gap has shrunk to 1 per cent, less than a decade after a major overhaul aimed at gradually equalising payments.

Women received £208.15 per week on average on reaching 66 and men got £209.95 in the year to November 2024, Government figures revealed in August 2025.

Although couples can get by on two full state pensions, financial experts warn individuals face a struggle on only one and recommend building a private fund too to achieve a decent standard of living.

The state pension is set to increase by 4.8 per cent from April 2026 under what is known as the ‘triple lock’ guarantee.

The exact sum those eligible will receive will depend on which version of the state pension they get, namely the old or new one.

What to do if you are falling short
1) If you are worried about whether you will have saved enough, investigate your existing pensions. Broadly speaking, you need to ask schemes the following questions.

– The current fund value.

– The current transfer value – because there might be a penalty to move.

– Whether the pension is in a final salary or defined contribution scheme. Defined contribution pensions take contributions from both employer and employee and invest them to provide a pot of money at retirement.

Unless you work in the public sector, they have now mostly replaced more generous gold-plated defined benefit – career average or final salary – pensions, which provide a guaranteed income after retirement until you die.

Defined contribution pensions are stingier and savers bear the investment risk, rather than employers.

– If there are any guarantees – for instance, a guaranteed annuity rate – and if you would lose them if you moved the fund.

– The pension projection at retirement age. You can use a pension calculator to see if you will have enough – these are widely available online.

2) You should add the forecast figures to what you anticipate getting in state pension, which is currently £230.25 a week or nearly £12,000 a year if you qualify for the full new rate. Get a state pension forecast here.

3) If you are tempted to merge your old pensions, read our guide first to ensure you won’t be penalised.

4) If you have lost track of old pots, the Government’s free pension tracing service is here.

Take care if you do an online search for the Pension Tracing Service as many companies using similar names will pop up in the results.

These will also offer to look for your pension, but try to charge or flog you other services, and could be fraudulent.

 

 

 

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