Robust Pension Savings Persist in 2025, Yet Deep-seated Gender Disparity Prevails
In a recent analysis, PensionBee, a leading online pension provider, has revealed a persistent gender gap in pension savings. The data, based on the contribution levels of its 286,000 customers in the first half of 2025, aligns with the Department for Work and Pensions (DWP) figures, which reveal a 48% gender pensions gap among those approaching retirement.
The analysis shows an average quarterly contribution of £1,347 for women, compared to £1,845 for men, representing a 27% gap. This gap is reflective of a broader inequality in retirement outcomes. Female pension contributions remained largely unchanged, from £1,349 to £1,347, while average quarterly contributions overall declined by 3%, from £1,677 in 2024 to £1,624 in 2025.
Lisa Picardo, Chief Business Officer UK at PensionBee, commented on the persistent gender gap, urging employers and the pensions industry to do more to support women's retirement outcomes. She emphasized the need to address systemic inequalities that lead to women contributing less to their pensions.
The gap between self-employed and employed savers has narrowed, with the self-employed contributing an average of £1,635 per quarter, compared to £1,679 among employed savers. However, contribution levels for self-employed savers declined slightly, by 4%, from a 2024 high over the same period, falling from £1,708. Contribution levels for employed savers also declined slightly, but by 1%, from £1,702.
The decline in contributions may be due to the market settling down after the exceptional high contributions spurred by the increased annual allowance in 2024.
Key causes of the gender gap include pay disparity, work patterns, investment approach, and systemic exclusions. Women tend to earn less, take career breaks or work part-time for childcare or family care, and are more risk-averse in their investment approach. Certain groups like gig economy workers, many of whom are women, lack automatic pension enrollment, reducing saving opportunities.
Potential solutions advocated by PensionBee and experts focus on policy reform, employer action, and individual education. Government action could extend auto-enrollment to younger workers and those in multiple part-time jobs, enhance recognition and crediting of unpaid caregiving periods for pensions, and support flexible contribution options accommodating career breaks. Employers and the pensions industry are encouraged to improve support for women’s pension savings through better workplace pension schemes and awareness efforts. Financial education is key to equipping women with better knowledge about investment options, risks, and maximizing contributions. Individuals are encouraged to increase pension contributions when possible, explore diversified investment options aligned with their risk profiles, and plan retirement goals clearly.
Picardo emphasized that the structural nature of these barriers means that relying solely on individuals to “fix” the system is ineffective, and comprehensive policy reforms are urgently needed to close the entrenched gender pension savings gap. Fresh questions have been raised about how to close the gap in pension savings between men and women, and it is clear that a multi-faceted approach will be required to address this issue.
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