Pension savers contributed £285, or 19%, more to their pots in 2024 than in 2023, increasing the average from £1,192 to £1,477, according to research by online pension provider PensionBee.
Its research found this increase was despite ongoing pressures on household budgets and the effects of prolonged high inflation and interest rates. In 2022, the average pension contribution was £959, which was a 17% drop from £1,124 in 2021.
The difference in annual contributions between genders has widened, with the total average pension contribution by men in 2024 increasing by 23% to £1,662, and for women by 18% to £1,155. In 2023, the total average pension contribution by men increased by 26% to £1,346, and for women by 24% to £982.
The 2024 figures mean that men’s average annual retirement savings were 44% higher than women’s, an increase from the 37% gender gap between annual contributions in the previous year. The gap between genders stood at 25% in 2023 and 37% in 2022.
In addition, challenges that impact women’s long-term savings have contributed to a 38% gap between UK male and female pension pots.
Lisa Picardo, chief business officer of PensionBee, said: “It’s encouraging to see saving for the future, even when things feel tight, but the widening gender contribution gap is a serious concern. 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.
“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. In addition to making pensions simpler and more accessible, we’ve partnered with a range of female-focused organisations to provide tailored financial education to women and minority gender groups. Our vision of a world where everyone enjoys a happy retirement is only possible if no one is left behind.”
