Royal London is urging the Government to take action to tackle the barriers preventing women from not saving enough for retirement

Women are retiring with less than half the savings of men, with just 42p in their pension pots for every £1 of their male counterparts.

Insurer Royal London found that while men have average nest eggs of £92,000, women typically have just £39,000 – a gap that experts warn is putting millions at risk of financial insecurity in later life.

The stark research comes ahead of the Government’s expected update on the second phase of its pension review and lays bare the persistent gender divide in retirement wealth.

Sarah Pennells, consumer finance specialist at Royal London, said the figures should serve as a wake-up call.

She said: “It’s deeply concerning that for every £1 a man has saved towards his pension, a woman has just 42p – this isn’t just a statistic, it’s a glaring inequality.

“Women typically retire with far less in their pension pots than men, and that’s no accident. It’s the result of lower average earnings, time out of the workforce for caring responsibilities, career breaks, and part-time work.”

Meanwhile, men have an average of £145,000 in personal assets compared to £79,000 for women, further highlighting the broader financial inequality that extends beyond pensions.

Confidence in managing pensions is also split along the gender line, with just 29 per cent of women saying they feel confident in combining or transferring pensions, compared to 44 per cent of men.

Campaigners warn that this confidence gap could leave many women disengaged from crucial financial planning and less likely to seek advice or switch to better pension products.

With the Government poised to release the next stage of its review, Royal London is calling for urgent action to tackle structural barriers that prevent women from saving inadequately for retirement.

Ms Pennells added: “It’s encouraging to see a continued focus on how the Government plans to support growth and reduce inequality.

“The upcoming second phase of the Government’s pensions review presents a valuable opportunity to explore a range of issues affecting retirement outcomes, including the gender pensions gap.”

While any proposed changes are unlikely to be immediate, Ms Pennells believe this phase of the review could help “lay the foundations for long-term improvements in the pension system”.

Royal London is also urging employers to play their part. Equal opportunities for career progression, flexible working policies, and better communication around workplace benefits could all make a significant difference.

Ms Pennells also stressed the importance of menopause awareness training, warning that too many women feel forced to reduce their hours or leave work altogether because of unsupportive working environments.

She explained: “This training could cover menopause and how to create a supportive environment so women experiencing symptoms don’t feel they have little choice but to reduce their hours or leave their job entirely.”

But she emphasised that the issue runs far deeper than individual choices or awareness campaigns.

She added: “We need to move beyond simply encouraging people to save more and make the system work better for everyone.

“That means addressing the structural barriers that hold women back from building up their pensions.”

One of the most urgent reforms, according to Ms Pennells, is expanding auto-enrolment into workplace pensions.

Currently, many low-paid and part-time workers – disproportionately women – are excluded from the system.

In automatic enrolment for workplace pensions, only those earning over £10,000 per year and working as employees are included. Self-employed people and those earning less than £10,000 – perhaps because they are part-time workers – are not included.

She said reforming enrolment rules would be “a key step” in boosting savings rates among women.

She said: “We also need to look at how childcare costs and caring responsibilities affect a woman’s ability to save and ensure that policies reflect the realities of modern working lives.”

How to help close your pension gaps

Below are ways you can help close your own pension gap to ensure you save enough for the standard of living you want in retirement.

  • If you are working part-time and automatically enrolled into a workplace pension scheme, consider increasing your monthly contributions.
  • If you earn less than £10,000 per year, speak to your employer about your options for joining your company pension scheme.
  • When it comes to saving into a pension, starting early allows a small contribution to build up over time.
  • Check your national insurance record to see if you will get the full state pension amount when you retire. You need a total of 35 years of national insurance contributions, or, in some cases, you can apply for credits.
  • Make use of digital technology to help understand if you are on track for a financially comfortable retirement.