Women are far more likely than men to feel powerless over their pension savings and pessimistic about retiring in comfort, new research from leading consumer pension provider PensionBee reveals.
Just 24% of women say they feel “a great deal of control” over their pension savings and retirement plans, compared to 37% of men, exposing a striking confidence gap between the sexes in long-term financial planning, according to a nationally representative survey of 1,000 UK adults.
Meanwhile, nearly a quarter of women (23%) said they feel they have “very little control” over their retirement prospects, compared to just 16% of men.
The figures suggest that despite ongoing efforts to close the significant and persistent gender pension gap, when it comes to how they feel about their ability to manage their finances, the difference between men and women remains considerable.
A system still skewed against women?
The findings point to a pension system that still leaves many women behind. While the gender pay gap has narrowed over time, women remain more likely to take career breaks, work part-time, or shoulder caregiving responsibilities - all of which can disrupt pension contributions and erode confidence.
The data also shows that women are more likely to abstain from making investment decisions altogether, with 10% saying they don’t make any investment decisions compared to just 3% of men.
At a time when pension adequacy is due to be under review, the findings highlight the importance of meaningful reform, particularly around whether employer contributions are truly sufficient to support long-term retirement security and whether the auto enrolment safety net is working as it should be.
Women falling further behind on retirement goals
When asked about progress toward retirement goals, 42% of men said they felt closer to achieving them. Only 33% of women said the same.
Conversely, 23% of women said they feel further away from retirement readiness compared to just 17% of men.
While younger respondents appear to be more confident, with 60% of 25-34 year olds said they feel closer to their saving goals, the overall picture points to long-standing challenges for women and lower-income workers in building the foundations for a secure later life.
Optimism gap emerges with age, income and location
The gap isn’t limited to gender. Optimism around achieving financial goals is also sharply divergent across age and income.
Among those aged 25-34, nearly half (45%) say they are “very optimistic” about reaching their savings or investment goals. That number plunges to just 8% for those aged 45-54, with pessimism peaking among 55-64 year olds.
Lower-income groups are more likely to feel lost altogether. Of those earning less than £15,000 a year, 12% say they feel “no control at all” over their retirement planning, whilst 11% said they do not have any retirement goals at all - both figures represented the highest figure among all income brackets.
A regional divide also emerges, with respondents in London far more upbeat about their financial decision making. Over a third (37%) reported feeling “much more confident” in their investment choices compared to a year ago - the highest rate of any UK region.
Commenting on these findings, Lisa Picardo, Chief Business Officer UK at PensionBee, said:
“The stubborn gender pension gap is not just a product of the gender pay gap, it is compounded over decades as women take more career breaks to look after children, take on more part-time work and bear disproportionate caregiving responsibilities.
Too often, these structural realities mean lower pension contributions and sometimes no retirement savings at all, translating into smaller pension pots and greater financial insecurity for women in later life.
As working patterns evolve, with self-employment and flexible work on the rise, we urgently need reforms so that saving for retirement reflects the way people actually work today.
Expanding auto enrolment to cover the self-employed and low earners would be a bold and necessary step in making inroads to close the gender gap in retirement outcomes.
Fair pensions must be built on universal access, full inclusion and long-term security for all workers, not just those who fit the traditional mould.”
