A smaller proportion of women than men across all working-age groups contribute to an occupational defined contribution (DC) pension, according to research by financial services consultancy Broadstone.
Its Wealth and assets survey, which is based on results relating to occupational DC pensions, found that across all age groups, 23% of male respondents aged 16 and above are actively contributing to their occupational DC pension and have a median pension pot size of £10,000.
In contrast, women aged older than 16 years have half the median pot size of just £5,000, with just 19% actively contributing to their scheme. Only 25% of women aged 35-44 years contribute to their workplace DC pension, compared to 33% of men. Men in this age group have a median occupational DC pot size of £12,000, almost double that of women, at £6,700.
Among those aged 45-54, 25% of women contribute to their occupational DC pension scheme compared to 32% of men and have a median pension wealth of £7,400, less than half of men’s £15,000 pot.
By age 55-64, the proportion of men and women contributing to their DC pot stands at 21% and 18%, respectively. However, the gap in median pot size has widened significantly, with men having nearly three times the median pot size as women, at £24,000 and £6,800 respectively.
Rachel Coles, workplace engagement consultant at Broadstone, said: “Our analysis highlights a stark gender difference in participation to active occupational DC pensions between men and women, driving a widening gap in total savings. Employers can play an important role by offering greater flexibility around pension contributions during career breaks, for example, while policymakers should explore solutions such as enhanced parental leave policies and better support for returners to the workforce.
“It’s also vital that women have access to tailored financial advice and planning tools to navigate career gaps and understand the importance of early saving in improving retirement outcomes. Employers can support this by offering financial education that helps female employees plan for any career breaks and take proactive steps to close any savings gaps.”
