At a glance
- UK women are on course to retire with £113,000 less than men on average
- One in three aren’t on track for even a minimum standard of living in retirement.
- The “mid-life crunch” — caring duties and menopause symptoms colliding with peak earning years is a major driver of lower pension saving.
- State Pension (2025/26): full new amount £230.25/week; basic (pre-2016) £176.45/week. Scheduled to rise again from April 2026.
- Pension age for women: 66 today, rising to 67 between 2026 and 2028 (same for men). GOV.UK
- Practical fixes exist: opt in to workplace pensions if you earn under the auto-enrolment trigger, protect your National Insurance (NI) credits, and make sure maternity/shared parental leave contributions are handled correctly.
Why the pension gap matters
A six-figure shortfall isn’t just a number; it can be the difference between a secure, enjoyable retirement and one that feels more constrained and stressful.
Fewer paid hours, career breaks and part time roles reduce both personal and employer pension contributions. Time out of markets also means missing years of compound growth, so a small gap in your 30s can snowball by your 60s.
Research highlights that symptoms linked to menopause can also knock progression and pay just when pension saving would usually be at its strongest.
A quick illustration: the cost of a five year break
Modelling shows a woman taking a five-year career break at 35 could finish with a pension pot around £69,000 smaller by State Pension age than if she hadn’t taken the break, the effect of missed contributions and lost growth over decades.
State Pension basics for women today
Women and men share the same State Pension age: 66 now, rising to 67 between 2026 and 2028. You’ll either be under the “basic” (pre-2016) or the “new” State Pension (on/after 6 April 2016).
For 2025/26, the full new amount is £230.25/week with a complete NI record (your figure may differ), and the basic full rate is £176.45/week. Always check your forecast and NI record first — it’s the foundation of your retirement income.
Quick reference
| System | 2025/26 weekly | 2026/27 weekly (from Apr 2026) |
|---|---|---|
|
New State Pension (post-2016) |
£230.25 |
£241.30 |
|
Basic State Pension (pre-2016) |
£176.45 |
£184.90 |
Figures are the published rates; your entitlement depends on your NI history.
Practical steps to start closing your pension gap
You don’t need to fix everything at once. Focus on a few high impact moves, then build from there.
1) Opt-in and boost employer money
If you earn under £10,000 with an employer you won’t be auto enrolled, but you can opt in and usually still receive employer contributions and tax relief. That’s free money towards your future.
2) Protect your NI record
Claim Child Benefit in the main carer’s name (even if it’s not physically paid to you or if some is clawed back) to keep NI credits flowing. If grandparents provide childcare for under-12s, consider Specified Adult Childcare credits (form CA9176) to transfer NI credits to them. Check for gaps and consider voluntary NI if it’s good value for you. GOV.UK.
3) Check maternity/shared parental leave rules
During paid leave, most employers should base their pension contributions on your pre-leave salary (typically up to 39 weeks). Your own pension deduction is taken from what you actually receive. It’s worth checking payslips and scheme rules so nothing is missed. GOV.UK.
4) Re-entering work? Rebuild contributions early
When you step back up, consider salary sacrifice (where appropriate), maximising employer match, and setting an automatic increase to your monthly amount each year. Small, earlier top ups can compound meaningfully over time.
Is this me? Common scenarios we see
Career break drift
A break for children, caring or study often starts as “just a year or two”. The intention is to restart contributions soon, but life’s busy and costs creep up. Before you know it, three or five years have gone by with nothing paid in, and the real cost is not just the missed payments, it’s the lost compounding on those payments.
What to do now
Pick a restart date (next payday works) and begin with a number you won’t notice, even £50 a month matters if it gets you moving. Try to set an automatic annual increase so your contributions rise. Check Child Benefit/NI credits are in the main carer’s name and review your NI record for any gaps that could be filled cost-effectively.
Also, could your spouse pay into your pension? This is entirely possible and something that can boost pension savings across the household.
Midlife squeeze
Your 40s and 50s can be financially and emotionally intense. Children still at home, parents needing support, and for many women, menopause symptoms that sap sleep, confidence and energy. Promotions may be passed over, hours cut, or you stop working completely, right when pension saving usually accelerates.
What to do now
Protect your earning power first: speak to your employer about flexible arrangements that keep progression open (compressed hours, project-based roles, or phased responsibility).
Ring-fence a base pension % (for example, keep at least the level that maximises employer match) even if you pause other work-based benefits. If symptoms are affecting work, ask HR about menopause support policies and occupational health, keeping you well at work is also a financial strategy.
Finally, schedule a short midlife review of your plan: check State Pension forecast, consolidate stray pots where appropriate, and map what’s needed to stay on track.
Frequently asked questions
It’s the difference in private pension wealth women and men typically retire with. The latest research puts it at £113,000, up £13,000 in a year.
Caring responsibilities and menopause related impacts often collide with peak earning years, leading to lower pay, fewer promotions and reduced contributions. Over time, compounding turns those shortfalls into a large gap.
Your State Pension is based on your NI record. Breaks can create gaps unless you receive credits (e.g. via Child Benefit). Check your forecast and consider voluntary NI to plug missing years where it makes sense.
Yes. Specified Adult Childcare credits can transfer NI credits from a working parent to a family carer for a child under 12.
Yes. You won’t be auto-enrolled, but you can opt in and should normally receive employer contributions, a valuable boost for part-time roles.
How Abode Financial Planning in Cirencester can help with women’s pensions
We have extensive experience helping women navigate the pinch points that can disproportionately affect their finances. That means building a plan that works with real life, career breaks, part-time work, caring responsibilities and the midlife squeeze, not against it.
We’ll map your lifetime cashflow around the key transitions many women face: stepping back for childcare, returning to work, switching to portfolio/part-time roles, or supporting parents. We’ll set a contribution plan that flexes with your income, prioritising the best employer match, salary sacrifice where it helps your take home pay, and using ISAs alongside pensions so you keep options open.
Your investments will be aligned to your risk comfort and timeframes, not a one size fits all default, with an eye on sequencing risk as you approach retirement and on creating a sustainable income later on.
We’ll also cover decisions that often get missed: pensions on divorce, beneficiary nominations and survivor benefits.
Most importantly, we’ll keep you moving. Reviews are focused and practical, with clear next actions you can stick to, so the plan actually happens.
Ready to talk? If you’re a woman in or near Cirencester and want a retirement plan built around your reality, book a FREE initial chat. We’ll help you create, and keep, a clear route to closing your pension gap.
Download your pension guide for high earners and company directors
Important information
This article is general information, not personal advice.
Pension and tax rules can change, and how they affect you depends on your circumstances. Investments can fall as well as rise and you may get back less than you invest.
Always check your State Pension forecast and NI record on GOV.UK before acting.
You might also be interested in...
Multiple pension pots? What to check…
How we keep this page current: We review this page at least every six months, or sooner after changes to...
Read more
A Guide to Combining Pensions Before…
How we keep this page current: We review this guide at least every six months, or sooner after pension, tax...
Read more
Financial planning mistakes business owners make…
At a glance A retirement ready business owner has a clear exit route, personal wealth outside the business and a plan...
Read more