A stark new report has revealed that the financial gulf between men and women in retirement is deepening, with caring responsibilities and menopause significantly undermining women's pension prospects.
A Widening Financial Divide
The median total private pension wealth for women at retirement is now estimated to be £173,000. This figure is a staggering £113,000 less than the average of £286,000 projected for men. This represents a concerning increase from the £100,000 gender pensions gap calculated just last year.
These findings, published in Scottish Widows' annual report on Tuesday 18 November 2025, highlight a persistent and growing problem. The pension provider arrived at these estimates by analysing people's current wealth, savings behaviour, and assumptions about future income growth and retirement age.
How Career Breaks Erode Financial Security
The research uncovers a clear disparity in career patterns between genders. It indicates that more than half (58%) of women at or near retirement have taken a career break, compared to just 12% of men.
Alarmingly, financial planning for these breaks is often absent. Two-fifths (40%) of women did not plan financially for their time away from work, and more than half (56%) never considered the long-term impact it would have on their retirement income.
While childcare remains the primary reason for career interruptions, the report identifies that health and the menopause also play a significant role. Women who had taken a career break were more likely than men to report that it had reduced their ability to save.
The Consequences and Potential Solutions
The repercussions of this savings shortfall are severe. Scottish Widows forecasts that 36% of women are not on track to achieve even a minimum lifestyle in retirement, compared to 31% of men. This benchmark is based on the retirement living standards set by the industry body, the Pensions and Lifetime Savings Association.
Susan Hope, a retirement expert at Scottish Widows, emphasised the need for action. "To achieve true equality in retirement, we need to make sure career breaks don’t break women’s future financial security," she stated.
Hope proposed several solutions, including improving awareness and take-up of shared parental leave policies. She also highlighted the importance of third-party contributions, where spouses actively save into a woman's pension during a career break. "Not only can it maximise tax relief for those who have used up their allowance, this can help to plug gaps in pension contributions while earning power is limited," she added.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, echoed these concerns, pointing to the need for workplace reform. "Women are paying a huge price for shouldering the majority of caring responsibilities," she said. "A more flexible approach to working patterns could be a gamechanger in helping women navigate this challenging time and build their financial resilience."
The report's findings are based on YouGov surveys of more than 4,000 people in August and September and over 5,100 people in January and February across the UK.
