Women face significant hurdles when it comes to saving for retirement, according to a new report that questions the traditional narrative of a “confidence gap” in financial planning. The study, backed by wealth management firm Evelyn Partners, calls on the financial services industry to address the deeper, systemic factors preventing women from saving adequately, rather than assuming a lack of confidence is the root cause.
Gender Pension Gap Still Wide
The research, which looked at pension wealth disparities, reveals stark contrasts between men and women. By the age of 59, men hold a median average of £75,000 in defined contribution (DC) pension wealth, compared to just £19,000 for women. The report attributes this significant gap to the gender pay disparity, compounded by women’s greater likelihood of taking on part-time work and time off for caregiving duties.
According to Emily Shipp, a psychologist and associate at the Edinburgh Futures Institute (EFI), the stereotype that women lack confidence in financial matters is misleading. “Confidence gaps reflect societal stereotypes, not actual capability,” Shipp said. She emphasized that women often carry the additional mental load of managing caregiving and domestic responsibilities, which further reduces the time and mental energy available for financial planning.
Beyond individual actions, the study highlights that traditional pension policies and financial advice systems are not designed to accommodate the diverse and often interrupted career paths of women. “Financial advice and pensions policy have historically focused on linear career trajectories, which do not align with the multi-phase, care-interrupted lives many women navigate,” the report argues.
Barriers to Effective Financial Planning
The report also warns that the financial sector needs to shift its focus away from labeling women’s financial behaviors as “risk-averse” or “cautious.” Instead, it suggests that these behaviors often reflect a more complex mix of life circumstances, including the ongoing responsibilities many women face in caregiving and family planning.
Further compounding the issue is the growing risk posed by DC pensions, where savers bear the burden of ensuring they have enough funds for retirement. The study notes that many people tend to adopt a “set and forget” attitude towards their pensions, which only exacerbates the problem of under-saving.
The report’s authors argue that a redesign of pension systems, one that recognizes the evolving nature of work and family life, would better serve both men and women. This would include policies that reflect the realities of part-time work, caregiving, and the greater financial challenges women face over the course of their careers.
Emma Sterland, Chief Financial Planning Officer at Evelyn Partners, welcomed the report, calling it a crucial step in challenging outdated assumptions about women’s financial behavior. “The insights challenge entrenched narratives and highlight the structural barriers women face in securing financial independence,” Sterland said.
With an ageing population and increasing life expectancy, experts argue that immediate reforms in pension policies are needed to prevent what has been referred to as a “pensions timebomb.” Helen Morrissey, Head of Retirement Analysis at Hargreaves Lansdown, emphasized the importance of enabling women to stay in the workforce by offering flexible working arrangements, including the option to work from home, to help bridge the gender gap in retirement savings.
The report concludes with a call for a comprehensive reassessment of how financial services can better serve diverse life courses, promoting long-term financial planning across all genders.
