International Women’s Day is a moment to celebrate progress – but also to acknowledge where inequality still exists. When it comes to retirement outcomes, the gender pension gap remains very real.
Equality doesn’t mean treating everyone the same – but everyone deserves the same opportunity for financial security. While this piece focuses on women, many of the themes discussed will resonate with anyone navigating career breaks, part-time work, caring responsibilities or non-linear career paths.
Financial planning for women remains important to me because research shows that many women are retiring with significantly less than men and this is not due to a lack of confidence, but because of systemic and structural factors.
A major study from the University of Edinburgh’s Futures Institute, supported by Evelyn Partners, found that some women accumulate up to 75% less in their pensions by age 60 than men. Department for Work and Pensions data highlights the scale of the issue: by age 59, average defined contribution pension savings are around £75,000 for men, compared to £19,000 for women.
This gap is shaped by:
- The gender pay gap
- Career breaks and part-time work linked to childcare
- Women’s disproportionate role in unpaid care
- The ‘mental load’ of organising family life
Historically, pension systems were designed around continuous, full-time career paths. As careers become longer and more varied, financial planning must evolve too.
While systemic change takes time, there are meaningful steps individuals can take now.
1 | Identify your aims and objectives
What do you want your life to look like – now and later?
If retirement feels too distant, start with what you don’t want. Perhaps you don’t want to work full-time into your late 60s. Maybe flexibility, travel or financial independence matters most.
Your plan doesn’t need to be perfect, it just needs to begin.
2 | Create a financial roadmap
Once you have an idea about what you want your life to look like, you need to create a financial roadmap. Break it into manageable sections including:
- Core living costs
- Lifestyle spending
- Unexpected one-offs (repairs, health costs, family support)
- Future retirement needs
For many women, single living at some stage – whether through choice, divorce or bereavement, means costs are not simply halved. Housing and utilities can be disproportionately expensive on one income.
An Independent Financial Adviser (IFA) can help model different scenarios, account for inflation and stress-test your plan against life’s uncertainties.
3 |Build a cash reserve and protect what you have
If you are financially independent, having accessible savings is essential. A common guide is to hold around six months of essential spending in cash.
But at the same time, it’s important to protect your income and assets. If illness stopped you working, how would bills be paid? Insurance such as income protection or critical illness cover can form part of a safety net.
There’s a balance to strike – too much cash can lose value over time due to inflation, but having too little leaves you vulnerable.
4 | Take the time to educate yourself
It’s often said women are less confident about investing, but the Edinburgh’s Future Institute research challenges the idea that this is the root cause of poorer outcomes.
Many women are juggling work, family logistics, caring responsibilities and the mental load of running a household. This can mean that long-term financial planning slips down the list. So rather than this being a confidence issue, it helps to see it as a capacity issue.
You don’t need to become a financial expert. But understanding what you have – pensions, savings, workplace benefits all help to put you in a stronger position to make decisions with professional guidance.
5 | Consider investing – and the risk of keeping cash assets
Defined contribution pensions place greater responsibility on individuals to make decisions about contributions and investments. Many people, not just women, find this complex.
While cash can feel safe, over the long term it exposes you to inflation risk, where rising prices erode spending power. Investing does not mean taking reckless risks. A diversified, well-structured portfolio aligned with your time horizon and comfort level can be a powerful tool for long-term growth.
With the right advice, what feels intimidating can become manageable and purposeful.
6 | Check your state pension and fill any gaps
Your State Pension provides a valuable foundation for retirement income. But part-time work, career breaks or time spent caring can affect your record.
Getting a State Pension forecast helps you to understand what you are on track to receive and whether there are opportunities to improve it, such as through National Insurance credits or voluntary contributions.
Progress, but not fast enough
There are encouraging signs of change, with more women in senior roles and growing awareness of financial inequality. But researchers warn that without meaningful changes to how pensions and financial systems support people with non-linear careers, we risk a long-term retirement shortfall for millions.
The key message this International Women’s Day is this: the pensions gap is not about women being “bad with money” or overly cautious. It reflects the reality that women are more likely to experience career interruptions and reduced contributions over time.
The good news? While policy reform may take time, personal action can start now. Small, consistent steps can make a powerful difference to long-term financial security.
And although this piece focuses on women, the principles apply to anyone whose career path doesn’t fit a traditional model. Supportive, personalised financial planning has never been more important — for everyone.
If you feel it would be helpful to talk this through, please contact us to arrange a meeting to discuss your plans for the future.
