This International Women’s Day, the global theme is #GiveToGain – a call to share knowledge and resources to accelerate gender equality. At Moneybox, we believe one of the most powerful things we can give is the confidence to take control of our financial futures.
While the gender pay gap is a well-known hurdle, our latest research highlights a more silent, yet equally impactful, divide: The gender pension gap.
What’s causing the gender pension gap?
The gender pension gap isn’t caused by one single issue, but a perfect storm of systemic, professional, and societal factors.
The gender pay gap
Put simply, if you earn less, you (and your employer) contribute less to your workplace pension. The UK’s median gender pay gap sits at 12.8% and the median hourly pay for full-time employees is 6.9% less for women than for men.
Because contributions to workplace pensions are calculated as a percentage of salary, women are impacted twice – once in take-home pay, and again in reduced pension investment growth.
The career gap and ‘Motherhood Penalty’
Women are twelve times more likely than men to take career breaks to fulfill caregiving duties. By age 55, one in four women have been out of work for more than five years – which could equate to a loss of £70,000 in pension savings by retirement age.
Taking a career break to start a family has a huge impact on women’s earnings. Five years after birth, when compared with earnings before, mothers lose on average:
- £65,618 for the first or only child
- £26,317 for a second child
- £32,456 for a third child
A reduction in earnings has long-term implications for pension savings.
The fear of getting it wrong
New Moneybox research reveals that millennial women across Britain have an average of £49,608 saved toward retirement – £36,000 less than their male counterparts. This isn’t just a minor shortfall – if left unchecked, this gap could grow to as much as £463,644 by the time they reach retirement age.
Data from the study shows that women are far more likely than men to feel anxious (31% vs 18%), uncertain (23% vs 16%), and overwhelmed (20% vs 15%) when it comes to their finances, which can lead to decision paralysis.
The study also shows that almost 28% of millennial women avoid financial risk altogether. While playing it safe often feels like the right move, it can mean missing out on the power of compound interest that comes with investing.
Brian Byrnes, Head of Personal Finance at Moneybox, labels this a confidence gap: “This isn’t a capability gap – it’s a confidence gap. Over time, doing nothing can be far more damaging than making small, informed moves.”
The mental load
The invisible labour of planning and organising family life often leaves women with little mental energy for financial planning.
Research shows that mothers handle 71% of administrative ‘thinking work’ in households, even if they have more money and less available time. That’s 60% more than fathers.
When mentally exhausted, keeping tabs on pension progress often falls to the bottom of the list.
The ‘lost pot’ problem
Because women are more likely to work part-time (37% compared with 14% of men), hold multiple jobs, or change roles frequently to accommodate family life, they are more likely to lose track of old pension pots.
Over half of all pension pots accumulated by women are ‘small pots’ worth under £5,000, compared to just one in three for men. More pots = more admin, which requires more available time and thinking space. Add to this, the potential loss in growth potential if these pots are sitting in low-yield funds, or are paying high fees.
Closing the confidence gap
You don’t wake up one morning suddenly “feeling confident.” Confidence is built through small, repeated actions. Think of it like a muscle – it might feel weak at first, but every time you check your balance, read a financial article, or make a small contribution, that muscle gets stronger.
The first step is simply, to take it!
The fear of getting it wrong often stems from the idea that our first move has to be a perfect one. It doesn’t. The most important step is simply breaking the seal. Whether it’s finding one old pension pot or setting up a monthly deposit, taking that initial action creates momentum that drowns out the noise of ‘what ifs’.
Clare Seal, Financial Coach, says: “To close this confidence gap, we have to help redefine risk – not as a danger to be avoided, but as a necessary tool for growth. Moving from a mindset of protection to one of participation is what ultimately transforms financial anxiety into wealth.”
Stay curious
When you come face to face with something you don’t understand, try to replace anxiety with curiosity. Instead of thinking “I should know this,” ask “How does this work?”
Keeping a curious mindset turns the ‘overwhelming’ world of finance into a series of interesting puzzles to solve. There are no stupid questions when it comes to your hard-earned money.
Clare Seal says: “Coming to terms with any mistakes and forgiving yourself for them is such an important step in shifting your money mindset away from anxiety and towards confidence – but it’s often one that is missed. In fact, I think people are sometimes afraid to forgive themselves or offer themselves compassion for fear of ‘letting themselves off the hook’ and falling back into old patterns of behaviour. But really, the opposite is true – you can’t truly move forward if you’re still angry with yourself for your past financial mistakes.”
Take the first step
One easy step you can take right now to progress your pension savings is to open a Moneybox Personal Pension. It offers one of the lowest personal pension fees in the UK* and makes it easy to track down your old workplace pensions – even if you don’t know your policy details.
As with all investing, your capital is at risk. The value of your pension can go up and down, and you may get back less than you invest.
Tax treatment depends on individual circumstances and may be subject to change in the future.
*Moneybox fees comparison, 05/02/2026.