A miniature man and miniature woman standing on top of a pile of coins. The concept of the gender pay gap
© Hye Jin Kang

Women across the UK save a third less than their male counterparts due to a gender savings gap, leaving a disparity of 40% between men and women at the age of retirement

The gender pay gap reached 8.3% in 2022, meaning women in the UK take home less income compared to their male counterparts. The impact of this gender pay gap has led to a savings gap too – lessening women’s savings compared to men’s.

Even after considering ISA (individual savings account) value and pension savings, women aged 65 and above face the greatest savings gap, with the disparity between the two genders as high as 40% at the age of retirement.

Money.co.uk reveals in a new study that women save a third less (34.5%) than their male colleagues.

Women must save more than £75,000 by 55 to close the difference in pension values

By the time they are 65, women will have had to put aside an extra £125,067 to close the current gender savings gap.

This gender savings gap increases with age, between men and women, with the smallest difference between men and women at ages 25 to 34, at a difference of 20% (£3,483) in savings.

In comparison, women at the start of their savings journey still average a quarter less (25.8%) than men when aged 16-24.

Age UK men’s average total savings UK women’s average total savings Savings difference % Savings difference
UK average £126,285 £82,719 £43,567 -34.5%
16-24 £7,776 £5,770 £2,006 -25.8%
24-34 £17,022 £13,539 £3,483 -20.5%
45-44 £46,462 £35,732 £10,730 -23.1%
45-54 £119,194 £77,799 £41,395 -34.7%
55-64 £259,645 £180,926 £78,719 -30.3%
65+ £307,612 £182,545 £125,067 -40.7%


The disparity could increase with the cost-of-living crisis

Almost 1 in 5 of female workers did not see a salary increase in the past year ¬– at 18% – while this happened to only 13% of their male colleagues.

Additionally, when considering mental health impacts, 48% of women are experiencing stress as a result of the cost-of-living crisis, compared to 36% of men.

This is affecting pensions too, researchers note, as the current men’s average pension value average is £106,450 versus the women’s average of £64,000. This is a difference of 39% in retirement funds that women are not able to save as part of their pension.

women checking bills. taxes bank account balance and calculating annual financial statements
© Sirijit Jongcharoenkulchai

How can women improve their personal savings?

Lucinda O’Brien, personal finance expert at money.co.uk said: “There are many ways of managing money in addition to the use of an ISA account and pension schemes. Making the most out of your savings can be crucial to secure your retirement funds for later life.

Choose the right savings account

“Not only should you choose the right savings account to suit your current income, but you should also reassess which savings account you need depending on your upcoming financial goals. For women in their twenties, an instant access account that has low commitments and immediate access to your money could be more suitable. For those slightly older, moving your funds to a fixed-rate account that provides higher interest rates as a better savings option for long-term goals.

Consider alternative forms of investment

“If you are looking to save for a long-term goal such as retirement, consider investing your money in the stock market. Although that comes with a degree of risk, it can offer higher returns than a savings account. Remember to always do your research before investing your savings.

Use apps to help you save

“Though saving pennies may seem fruitless, never underestimate the power of consistently saving even just a few pounds here and there. Automatic saving apps or banking functions such as Plum or Chip can help bolster your savings without even noticing.”


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