Last week, the government confirmed plans to raise the state pension age to 67, with further increases under review. Today, leading wealth managers have warned that this change could cost millions of workers aged between 51 and 53, more than £17,000 in lost income.

Alongside the review, The Department for Work & Pensions revealed a huge 48% gap in private pension wealth of men and women aged 55 to 59 – a difference that will translate into around £5,000 less in annual income for women by the time they turn 60. And with nearly half of working-age adults in the UK not paying into a private or workplace pension at all, the situation is only set to get worse. 

While the gender pay gap rightly receives regular attention, the gender pension gap remains far less visible, although it may be even more damaging in the long run. This disparity is the result of well-known, deeply embedded inequalities: lower lifetime earnings, career breaks, part-time roles, and disproportionate caregiving responsibilities. Over time, these compound, leaving women with significantly smaller pension pots.

According to Standard Life, by mid-career, men are saving around 50% more into their pensions than women. By retirement, women typically have a third less saved — many relying solely on the state pension, an increasingly fragile and insufficient safety net in light of economic pressures and policy change.

So how can we make a difference? 

The drivers of the gender pension gap are well understood. What’s needed now is sustained, systemic change.

However, financial services brands can also play their part. By bringing the gender pension gap into the spotlight and advocating for change, they can help shift both the narrative and the outcomes. Designing products and guidance that reflect women’s real financial journeys, and fostering more inclusive, accessible conversations around long-term planning can all have an impact. 

The pension system is clearly under strain, but securing better outcomes for women is key to building a stronger, more equitable financial future for everyone.