How large is the gender pay gap? The answer may surprise you. The latest Office for National Statistics (ONS) assessment puts the gap among full-time employees at 6.9% in April 2025. In 2005, the ONS figure was almost twice as high, at 13%.
However, another gender gap is much wider: the gender pension gap. A new report from the Pension Policy Institute (PPI) highlights the disparity—or perhaps “chasm” is a better word—in pension wealth between men and women in their late 50s, typically within a decade of retirement.
The graph above, based on men and women aged 57, shows a gap of 46%. From the male perspective, this means that, on average, a 57-year-old man has 85% more in his pension pot than a woman of the same age. The PPI links this substantial gap to several factors, with two standing out:
- Different working patterns: A smaller share of women than men are in employment (75% compared with 82%). Among those in work, women are more likely to work part-time (33% versus 10%), often because they are the family’s primary caregiver. For part-time work, the gender pay gap favours women: the ONS reports that female part-timers earn 2.9% more than their male counterparts. The drawback is that, despite the higher hourly pay rate, their total earnings are lower than those of full-time workers.
- Gender pay gap: Pension contributions are usually tied to pay, often calculated as a percentage of salary. Because women generally earn less than men, the same contribution rate generates a smaller cash contribution and, consequently, a smaller pension pot. For low earners, automatic enrolment rules can compound the problem: people earning up to £10,000 a year are excluded, while contributions for those enrolled are calculated without the first £6,240 of earnings. At an 8% contribution rate, that means about £500 a year in contributions are not made.
If you find yourself on the wrong side of the pension gender gap, consider increasing your personal pension contributions if possible. And take advice on your overall retirement planning. Read more about the gender pay gap here.