Planning for Retirement? It’s Never Too Early, Ladies

Retirement planning isn’t the most glamorous topic. There’s no Instagram filter for a pension pot, and “topped up my ISA today” rarely makes for a great dinner party story. But the harsh reality is that women in the UK are heading towards retirement with significantly less money than men. So, the earlier you start thinking about it, the better off you’ll be.

The stats are striking. By the time a woman reaches state pension age, she’ll have saved an average of £81,000 in her pension pot, a full £75,000 less than the average man, who will have saved around £156,000. That’s not a small difference. That’s nearly two decades’ worth of pension savings. Read our insightful article to find out why this gap exists and, more usefully, what you can do about it.

Why Are Women Worse Off?

The gender pension gap doesn’t come from nowhere. It’s the end result of a long list of financial disadvantages that pile up over a woman’s working life. The gender pay gap sits at 12.8% as of 2025, meaning women are earning less to begin with, so they’re contributing less to their pensions from day one.

Career breaks for childcare or family caring responsibilities make things worse. According to NOW, Pensions’ 2024 gender pensions gap report, women lose around £39,000 in pension savings through career breaks alone. Some women take a career gap of up to ten years to care for children or elderly relatives, which could even affect their State Pension eligibility (you’ll need 35 qualifying years of work to get the full amount).

And It Gets Trickier…

Here’s the cruel irony: women need more in retirement, not less. On average, women live longer than men, which means your pension pot will need to stretch further. You’ll also need to cover more years of living costs, healthcare, and everything else that comes with later life.

Divorce can also throw a spanner in the works. More than one in four divorces in the UK happens after the age of 50, and not many of those women seek financial advice as part of the process. Women are more likely to waive their rights to a partner’s pension during a divorce, even though they’re legally entitled to a portion of it.

The new State Pension for 2025/26 stands at £11,973 a year, well short of the £25,000 annual income that most over-50s say they’d like in retirement. Private savings will need to make up the difference, which is why starting early matters so much.

So, What Can You Do About It?

The good news is that being aware of the problem puts you ahead of plenty of people. Getting informed is a great first step. Here’s what you can start doing:

• Check your State Pension forecast on the government’s website to see where you stand and whether there are gaps you can fill.
• Seek professional guidance. Services like those offered by Rathbones cover everything from investment management to financial planning and tax, a joined-up approach that can help make your money work harder for you.
• Increase your pension contributions. Even a small increase each month will make a difference over time, thanks to compound growth.
• Plan as a couple if you’re in a relationship. Your partner can contribute to your pension during career breaks, which helps close the gap.
• Don’t lose your agency in divorce. If your relationship breaks down, make sure pensions are factored into any financial settlement.

It’s Not Too Late (And It’s Definitely Not Too Early)

There’s a persistent myth that retirement planning is something you’ll get around to sometime in your 50s. The truth is, the sooner you start, the more time your money will have to grow. Even saving modest amounts in your 20s or 30s will put you in a much stronger position later.

The research also suggests women aren’t disengaged, they’re actually more likely than men to list a pension as a top priority when applying for a new job. The desire is there. It’s often the structural barriers, the pay gap, the career breaks, the caring responsibilities, that get in the way. Knowing that means you can plan around them.

The Bottom Line

The gender pension gap is real, it’s significant, and it won’t close on its own. But understanding the problem is where change begins. No matter if you’re 25 or 55, whether you’re in full-time work or taking a career break, there’ll be steps you can take to build a stronger financial future.

Retirement might feel like a long way off right now. But your future self will thank you for the decisions you make today.

The value of your investments and the income from them may go down as well as up, and you could get back less than you invested. Past performance should not be seen as an indication of future performance.