Millions of women in the UK may face significantly lower retirement income than men, recent coverage highlighting the widening gender pension gap and the role financial literacy plays in long-term financial outcomes.
Featured by The Times as part of its Smarter with Money campaign, analysis of HMRC data by Bowmore Financial Planning showsthat women’s private pension income is currently 67% of men’s on average.
Based on HM Revenue & Customs data for the 2024–25 tax year, the average private pension income for women was £11,500, compared with £17,200 for men. Four years ago, women’s pension income was 71% of men’s, suggesting the gap has widened in recent years.
The disparity reflects several structural factors, including the gender pay gap and the fact that women are more likely to take career breaks to raise children or care for family members, which can result in lower pension contributions over time.
Gill Millen, Managing Director at Bowmore Financial Planning, said:
“It is concerning that women’s pension incomes are so much lower than men’s. Women not only earn less but often stop contributing to their pensions when they step out of work to care for family.
The compound growth of investments means that the gap between what men and women invest can look even more daunting when they come to retire.”
The findings highlight the importance of improving financial education and encouraging earlier engagement with pensions and long-term financial planning.
The Times: Women twice as likely to have poor financial literacy
Bowmore Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority.