Gender pension gap widens as men outpace women by £17,000

Gender pension gap widens as men outpace women by £17,000
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The Money Matters report aims to help more women engage with investing

Men have almost £49,000 in their pension pot compared to just over £32,000 for women, according to AJ Bell’s latest Money Matters report.

The study was conducted along 4,000 UK adults in June 2023 and was based on parents working full-time before having a child.

Just a quarter of women carried on paying into their pension at the same rate during parental leave, compared to 70% of men.

The study suggested that men prioritise their pensions far more than women, but women live longer than men, which means "they should actually have a bigger pension pot".

Meanwhile, half of women have never paid more into their pension than the minimum requirement. In fact, women are also more likely to not have engaged with their pension at all - a third said they had no idea how much was in their pension pot.

Half of women said they were not confident that their pension pot would enable them to live comfortably when they retire.

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Single tax

Single women face higher costs from living alone. They are saving less, putting less in their pension and are less confident about their financial future. Three in five single women said that living alone has a negative impact on their finances.

Single women have an average of just over £29,000 in their pension, compared to £32,000 on average for all women. Single women have less money saved than single men: just shy of £4,600 for single men vs £3,600 for single women.

When questioned, single people said they are less likely to feel confident that they will pay off their mortgage by the time they retire: 63% of single women are confident, compared to the average of 75% for married people. And asked about whether their pension will be enough in retirement, just a third of single women are confident they can live comfortably on it compared to 56% of married people.

Source: Professional Advisor