Britons are placing more of their hard-earned cash into pension pots compared to last year, but analysts are warning of an "alarming" savings gap that remains.
Despite financial pressures from high inflation and rising interest rates, savers contributed an average of £285 (19 per cent) more to their pensions in 2024 compared to 2023.
Research from PensionBee found this sharp increase took the average annual pension contribution from £1,192 in 2023 to £1,477 in 2024.
However, the data reveals a concerning trend in the difference between men's and women's retirement savings which is leading to a "gender pension gap".
Britons have bolstered their pension savings by 19 per cent
GETTY
Analysts are warning that this gap between genders has grown significantly over the past year, threatening to exacerbate existing inequalities in retirement income.
In 2024, men's total average pension contribution increased by £316 (23 per cent), significantly outpacing the £174 (18 per cent) rise seen among women.
This disparity has resulted in men's average annual retirement savings reaching £1,662 per year. Women, by comparison, are now saving an average of £1,155 annually towards their pensions.
The difference means men are contributing 44 per cent more than women to their retirement funds, which represents a notable increase from the 37 per cent gap observed last year.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Britons are contributing more to their pension pots
GETTYIn 2023, women contributed an average of £982 annually, while men put away £1,346, creating a £365 gap. The widening trend is not new, with data showing the gap has been growing steadily since 2022.
That year, the difference between contributions was £278 (35 per cent), with women contributing an average of £794 and men £1,072.
PensionBee notes that women continue to face significant structural challenges impacting their long-term savings. These include lower average pay, career breaks, and unpaid caregiving responsibilities.
Such factors contribute to a substantial 38 per cent gap between male and female pension pots across the UK. The growing contribution disparity risks making this gap even harder to close in the future.
Women's longer average lifespans further compound the retirement savings challenge. PensionBee chief business officer, Lisa Picardo, acknowledged the positive trend in overall savings but expressed serious concerns about the gender disparity.
"It's encouraging to see our customers prioritising saving for their future, even when things feel tight, but the widening gender contribution gap is a serious concern," she said.
LATEST DEVELOPMENTS:
Women are losing out due to the "gender pension gap"
GETTYPicardo highlighted the multiple challenges women already face when saving for retirement.
"Women already face challenges such as lower average pay, career breaks, unpaid caregiving responsibilities and lower lifetime earnings, plus they tend to live longer, making it even more critical that they can save effectively for retirement," she explained.
She called for industry-wide changes to address the issue, adding: "The pensions industry still has a long way to go in enabling this, by making its products, content and tools more accessible and transparent to all savers, regardless of gender."
Most read
More
