Women often retire with less savings than men: 4 ways to build the future you want

After years of working, saving, and investing, you might expect that when the time comes, you’ll have enough in your retirement pot to fund the lifestyle you want.

Unfortunately, if you’re a woman, this might not be the case due to the stubborn gender pension gap that persists in the UK. Recent research by interactive investor has revealed that women need to earn more than twice the average salary – £74,000 annually compared to £35,000 – from age 45 to match men’s pension wealth.

But don’t despair. Whatever stage of life you’re at, there are steps you can take to boost your retirement funds.

Read on to learn about the reasons for the gender disparity in retirement wealth and discover practical steps you can take now to improve your long-term financial security.

Why the gender disparity in retirement wealth exists

Understanding the reasons why women typically retire with less savings than men is the first step towards addressing them.

• The gender pay gap – According to the Office for National Statistics (ONS), in January 2026, the average difference between men’s and women’s earnings is 6.9%. Lower earnings could mean smaller pension contributions and less capacity to save and invest for retirement outside of pensions
• Career breaks – Research findings published by HR Magazine show that women are 12 times more likely than men to take a career break to care for children, resulting in a widening gender pension savings gap
• Part-time working – UK Parliament figures reveal that 36% of women in employment work part-time compared with 14% of men. Reduced hours typically mean lower earnings and pension contributions. Moreover, pension auto-enrolment only applies if earnings exceed a certain threshold. As such, some part-time female workers may not pay into a workplace pension at all
• Divorce – According to calculations by Scottish Widows, reported by FTAdviser, divorcing women could collectively be missing out by up to £4.5 billion a year as a result of not including pensions in their divorce

Additionally, women have longer average life expectancies than men, meaning their retirement savings often need to last longer. This means they may face a dual challenge of having less savings and more retirement years to fund.

4 steps women can take now to prepare financially for the retirement they want

As a woman, it’s important to prioritise retirement planning as early as possible to allow yourself maximum time to combat the challenges outlined above.

Here are four practical steps you can take now:

1. Understand your current financial position

Getting a clear picture of where you are now in terms of saving for retirement gives you a starting point and sense of control.

It might help you to make a list of:

• All your pensions (you may need to track down ‘lost’ pensions from former workplaces and providers)
• Other savings and investments that could provide a retirement income
• Any debts and ongoing financial commitments

You’ll need to understand both the current and future value of your pensions, savings, and investments. Many pension providers include projections for your future retirement income online or in the annual statements they provide.

2. Estimate your retirement income needs

Working out how much money you might need to fund your retirement could help you set meaningful goals that motivate you to save and invest in your future.

As well as everyday costs such as housing and food, think about when you’d like to retire and what kind of lifestyle you want after leaving work behind. Do you dream of retiring early to spend more time with your family, or do you have ambitions to travel the world?

Remember that your income needs in retirement may fluctuate. For example, you may spend more in the early years when you’re busy living out the dreams you’ve held for decades. Likewise, your costs could rise later in life due to increasing healthcare needs and medical costs.

A financial planner can use cashflow modelling to help you visualise your income needs in different scenarios and show you how these measure up to the finances you already have in place (step one). This could allow you to identify any potential shortfall and take action to address this as soon as possible.

3. Maximise your private and workplace pension contributions

Pensions are one of the most powerful tools for building your retirement wealth for several reasons:

• Tax relief – Basic rate taxpayers receive 20% tax relief on all eligible pension contributions automatically. Higher-rate and additional-rate taxpayers can claim an additional 20% and 25% respectively by submitting a self-assessment tax return or contacting HMRC
• Employer contributions – If you pay into a workplace pension, your employer must make regular contributions to your pension
• Tax-efficient growth – Investments inside your pension grow free from capital gains tax and income tax up to certain annual limits (more on this later)
• Long-term compounding – Even modest contributions could grow significantly over time, thanks to the powerful effect of compounding, where returns generate further returns

So, you might want to consider increasing your contributions if you’re keen to bolster your retirement funds.

Just remember that tax-efficient contributions to your pensions – by you or others – are capped by the Annual Allowance or 100% of your earnings (whichever is lower).

In the 2025/26 tax year, the Annual Allowance is £60,000 for most people. Yours may be lower if your income exceeds certain amounts or you’ve flexibly accessed your pension.

4. Consider investing in the stock market

Research by Aviva reveals that 37% of women do not invest, compared to 24% of men. The reasons women gave for not investing were:

• The risk is too high (18%)
• Investing is too complicated (10%)
• Not knowing how to get started (6%)

However, investing offers the potential for higher long-term growth than holding your money in a savings account. Indeed, the value of your cash savings may be eroded over time by inflation.

If you’re uncertain about investing, a financial planner can boost your knowledge and confidence. They can also create a strategy that aligns with your appetite for risk and your long-term financial goals.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

Workplace pensions are regulated by The Pensions Regulator.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.