Women's Pension Pots Worth Half Of Men's

Women significantly lag men in terms of their pensions savings, reveals independent research conducted on behalf of Handelsbanken Wealth & Asset Management.

Among women who have a pension, their savings are typically much smaller than their male counterparts’, according to the firm’s latest report, Gender and generation: unravelling the wealth gap. The average pension pot for a woman was found to be roughly £37,500 – half the size of the average male pension pot of £75,000. Furthermore, nearly a third (29%) of women have pension pots under £25,000, compared to only 16% of men. Only one in 10 (12%) of women have pots exceeding £100,000, while this is true for nearly a third (30%) of men.

A higher percentage of women (33%) are unsure about the value of their pension pot compared to men (24%). This lack of awareness could prove detrimental to their ability to make informed decisions about their retirement savings.

The research found that overall, women are less likely to have pension savings of any kind. Just 71% of women over the age of 40 hold a pension pot, versus 83% of men. This does improve among younger age groups, however, with 80% of women in their 30s having a pension, compared to 82% men – suggesting we may be seeing progress among the younger generations.

According to the study, only a third (33%) of UK adults feel confident about achieving a comfortable retirement. The gender disparity unsurprisingly persists here, with 38% of men expressing confidence in their future, compared to only 27% of women. Lack of awareness may play a role in this, with a quarter of people overall stating that they do not feel their employer is helpful in explaining their workplace pension and post-retirement planning.

The research also highlighted who tends to be in charge of managing personal pensions. The largest share of respondents (38%) reported that their workplace managed their pensions, followed by those who oversee it themselves (28%). Men are more likely to manage their pensions independently compared to women (33% versus 23%).

Christine Ross, Head of Private Office (North) & Client Director at Handelsbanken Wealth & Asset Management:
“This report serves as a stark reminder of the gender gap in UK pension savings, and the urgent need to address it. Women are considerably less likely than men to have pensions and, on average, accumulate substantially less in their pension pots, placing them at greater risk of financial insecurity in their retirement years. It’s especially important that older generations of women are supported in narrowing the gap in retirement savings.

“While some progress may be evident among younger generations, work remains to ensure women have equal opportunities to build adequate retirement savings, and that younger people are getting the right advice when it comes to retirement savings. It’s vital that young men and women alike are encouraged to engage with pension planning earlier to make the most of the potential for long-term growth, rather than putting off retirement savings in favour of shorter-term priorities.”