- Men build far larger pension pots than women by their late 50s
- Career breaks and unpaid care play a major role in the gap
- Report calls for changes to pensions policy and financial advice
Women in the UK are reaching retirement age with far less financial security than men, largely because the pensions system is designed around male career patterns, according to a new academic report. The study warns that without reform, millions of women could face financial strain later in life.
Research led by the University of Edinburgh, and supported by wealth manager Evelyn Partners, found that by age 60 men have built up 75 per cent more pension wealth than women. The authors described this gap as a potential pensions timebomb.
Government data suggests the issue is widespread. The Department for Work and Pensions estimates that nearly 15 million people in the UK are not saving enough for retirement, with women more likely to fall short.
A gap shaped by everyday life
By age 59, men hold an average of £75,000 in defined contribution pensions, now the most common form of private workplace pension. Women, by comparison, hold around £19,000, according to the report.
The study argues that this difference is often misunderstood. Rather than being caused by a lack of confidence around money, it says the gap is driven by systemic and social factors. These include lower lifetime earnings, time away from work to raise children, part-time jobs, and the uneven share of unpaid care work.
Figures from the Office for National Statistics show that women spend about an extra hour each day on childcare and housework. They also carry out 73 per cent of what researchers call cognitive labour, such as planning family schedules and managing household needs.
According to the report, this constant time pressure leaves little room for long-term financial planning, including decisions around pensions.
System struggles to keep up
The authors say pensions policy and financial advice have long been based on linear, uninterrupted careers, which no longer reflect how many people work. This mismatch, they warn, puts women at a disadvantage as working lives become longer and more fragmented.
Dr Emily Shipp, a psychologist at the Edinburgh Futures Institute and author of It’s Not About Confidence: The Hidden Forces Shaping Women’s Financial Futures, reportedly said the common focus on a confidence gap misses the real problem. Mental load and time scarcity, she said, reduce both the time and mental space needed to engage with complex financial choices.
Defined contribution pensions add another layer of difficulty. These schemes require people to actively decide how much to contribute, where to invest, and whether to combine different pension pots. The report says this complexity tends to widen existing inequalities.
Emma Sterland, chief financial planning officer at Evelyn Partners, reportedly said the findings challenge long-held assumptions about women and money, and show the need for a more inclusive financial system.
Tobi Schneider, fintech sector lead at Edinburgh Innovations and co-director of the Compassion in Financial Services Hub, reportedly warned that without action the UK risks serious financial insecurity in later life, particularly as the population ages.
