Despite progress in many areas of gender equality, one gap remains stubbornly wide—the pension gender gap. On average, women retire with significantly less in pension savings than men, leading to long-term financial insecurity. The reasons are complex—career breaks, lower average earnings, so less going into pension savings each month from women and their employers, and part-time work all play a role. But with better awareness and smarter planning, the gap can begin to close.
1- Raising Awareness and Building Financial Confidence
In collaboration with pension firms, I’ve been developing webinars and workshops specifically to highlight this issue. The aim is simple: to ensure more women achieve financial security throughout their lives. Education and early planning are key. We need to shift the mindset from “it’s too early to think about retirement” to “the earlier, the better.”
2 – Start Early, Think Long Term
One of the most powerful tools in financial planning is compounding—earning interest on interest over a longer period of time. The earlier women start saving, even small amounts, the more they can benefit from compounding growth. Encouraging younger people, especially women, to begin planning their financial futures now can make a huge difference decades down the line.
3 – Your Pension Is More Than Just a Fund
Pension planning isn’t just about the workplace scheme or private pension savings. My approach is to encourage people to view their entire financial landscape—pension pots, savings, property, and other investments—as part of their retirement plan. Understanding how to manage these assets tax-efficiently is crucial.
For example, while property is often the biggest asset people own, it typically doesn’t produce an income in retirement. However, releasing some of the equity in a property in later life, can help create an income or extra funds – offering both a way to boost retirement income and reduce inheritance tax (IHT) by introducing some debt into an estate.
Challenging the Debt-Free Myth
We often hear that the goal is to retire completely debt-free. While it’s a sensible target for many, there are situations where a little debt in an estate—particularly for those with high-value assets—can be beneficial for IHT planning. Used strategically, debt can reduce the taxable value of an estate and increase the income available in retirement.
New Rules, New Thinking
Proposed changes to pension and IHT laws mean it may no longer be as advantageous to leave pension savings to dependents. As it is looking like pensions will now be included in the estate value for tax purposes, it may be wise to re-think future plans. These developments make it even more important to regularly review financial plans, ensuring they align with both your personal goals and current and changing legislation.
Extra Tips for Women at Every Stage:
As soon as you start earning start putting something away towards your retirement. It will then become part of your monthly deductions, and you won’t miss it as it comes out before you get your net salary.
Check your pension regularly: know what’s in it, how it is performing and what it’s projected to provide.
Maximise contributions from you and your employer. Even modest regular contributions can grow significantly with the power of compounding. Many firms will pay in more than the government minimum if you up your contributions too. Like a pay rise for your later life. An extra percentage or two of your earnings can make a significant different to your overall pot at retirement.
Increase contributions and save/invest in different areas – as you earn more put a bit more away. If you get a bonus put a percentage of that away. Don’t just think about a pension for savings/investments. Look at other forms of investing, so you have diversified assets.
Seek professional advice – especially around IHT, investing and retirement income planning.
Stay informed – keep up to date with changes to pension rules, so you can decide if you need to change tack. Attend educational workshops or webinars offered through employers, financial institutions or networking and community groups.
Review plans often – don’t leave your savings to languish. Legislation changes, and so should your strategy.
Empowering women to take control of their retirement planning isn’t just a financial issue—it’s a social one. By raising awareness, encouraging early action, and demystifying the complexity of pensions and estate planning, more women can approach retirement with confidence, clarity, and security.