Could negotiating your salary help close the gender pension gap?

Women have come a long way in the workplace. From the Equal Pay Act to the introduction of mandatory gender pay gap reporting, each generation has pushed for greater equality. 

But progress hasn’t closed the gap completely. According to ONS data, the median gender pay gap across all UK employees was 13% in 2025. 

PensionBee’s Pension Landscape found an even wider 37% gender pension gap, with the average pension pot at £16,169 for women compared with £25,652 for men.

There are many reasons for these gaps, from caring responsibilities and career breaks to differences in working patterns and pay. 

But learning to negotiate could help. Whether you’re asking for a pay rise or setting your day rate with a client, what you negotiate today could influence how much you’re able to put away for your future.

Do women negotiate less?

A 2022 survey by Reed found a noticeable difference in who’s willing to ask for more. While 61% of men said they were likely to negotiate their salary when moving into a new role, only 41% of women said the same.

And for many women, that conversation hasn’t happened at all. Almost 59% said they’d never negotiated a salary offer, compared with 39% of men.

If you’ve ever wondered whether asking for more might make you seem difficult, you may recognise some of that hesitation.

For women, negotiation can come with an extra calculation. It’s not always just “Am I worth more?”. It can also be “How will I be perceived if I ask?”.

The concern isn’t entirely unfounded. A study by researchers at Harvard and Carnegie Mellon found that women who negotiated for higher pay could face greater social backlash than men who did the same, including being perceived as more demanding and less likeable.

The authors argued that women’s reluctance to negotiate may reflect the very real social cost of asking, rather than simply a lack of confidence. 

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How does pay affect your pension?

PensionBee research found that in the first half of 2025, men contributed an average of £1,845 to their pensions each quarter. For women, it was £1,347. That’s a 27% difference.

There are many reasons for this gap. Lower average pay, career breaks and caring responsibilities are some of the structural factors that may affect women’s pension contributions.

Salary negotiation alone won’t solve these wider inequalities. But your starting salary can have a knock-on effect.

Say you accept £35,000 instead of negotiating £38,000. The difference is £3,000 in the first year. But it may not end there.

If future pay rises and bonuses are calculated as a percentage of your salary, they may build from that lower starting point. And if your workplace pension contributions are linked to your earnings, the amount going into your pension could be lower too.

Over a career, these differences may build on each other. So negotiating your salary isn’t only about what you earn today. It could also affect how much you’re able to put towards your future.

The long-term impact of small increases  

Small differences in pension contributions could become much bigger over a working life.

PensionBee research found that someone contributing 13% of their ‘qualifying earnings’, rather than the 8% (the minimum under Auto-Enrolment rules), could have an extra £121,366 in their pension by age 68.

Starting earlier could matter too. In the same research, starting pension contributions at age 30 instead of 21 resulted in a £53,085 shortfall by age 68.

That’s because money invested earlier has longer to potentially grow and benefit from compounding. So if negotiating a higher salary gives you more scope to contribute to your pension, it could make a meaningful difference to your retirement savings over time.

Preparing to negotiate

Negotiating can feel uncomfortable, but preparation can make the conversation easier. Here are a few ways to get started.

1. Know what your role is worth

Look at salary ranges for similar roles and speak to people in your industry. Try not to use your current salary as the benchmark.

2. Build your case

Think about the value you’ve brought to your employer. Keep track of your achievements, extra responsibilities and any goals you’ve met. Having clear examples can help you explain why you’re asking for more.

3. Practise the conversation

Try practising your request out loud before the meeting, either with someone you trust or simply by yourself. Saying the words beforehand can make them feel more natural when it’s time to ask. 

4. Pick your moment

Timing can matter. If possible, find out when your employer sets budgets and schedules pay reviews. Raising the conversation before decisions are finalised may give your employer more room to consider your request.

5. Prepare for a ‘no’

A ‘no’ now doesn’t always mean ‘no’ forever. Ask when you can revisit the conversation and what you’d need to achieve for an increase to be considered. It can also help to follow up in writing, so you both have a record of what was agreed.

Want to hear more tips on negotiating your pay? Listen to our Pension Confident Podcast episode, “How to earn more money”. You can also watch the video on YouTube or read the transcript. 

Can you negotiate your pension? 

Salary tends to get most of the attention during a job negotiation. But your employer’s pension contribution is worth checking too.

Under Auto-Enrolment rules, the minimum contribution from your employer is 3% of your ‘qualifying earnings’. But some employers pay more than the legal minimum.

If you’re thinking about asking for more, it’s worth doing some research first. Check your contract, find out what’s typical in your industry and review your latest pension statement so you know exactly how much you and your employer currently pay in.

When you’re ready to have the conversation, you could raise it during a one-to-one or performance review. 

Be clear about the contribution level you’d like and find out what options are available, including:

• whether they’ll increase their contribution;
• whether they offer contribution matching; and
• what the maximum employer contribution is.

If they say no, ask whether a smaller increase is possible. There may be budget reasons why your employer can’t increase contributions right now, but you can also ask when you could raise it again.

Read more about how to ask your employer to pay more into your pension.

The takeaway

There are encouraging signs that show women are increasingly prioritising their retirement savings. PensionBee analysis found that in January 2026, women contributed more to their pensions overall than men, despite making up 42% of PensionBee customers. Women aged 40 to 49 contributed 85% more than men in the same age group.

Closing the gender pension gap will require wider change. But when it comes to the things you can influence, knowing your worth and asking for fair pay is a good place to start. 

Risk warning

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.