Men’s DC pension pots twice as large as women’s

Men’s DC pension pots are twice the size of women’s on average, according to new analysis from pensions consultancy Broadstone. It found that across all age groups, 23% of men aged 16 and above were actively contributing to their occupational DC pension and had a median occupational DC pension pot size of £10,000. In contrast women older than 16 have half the median occupational DC pot size at just £5,000, with a smaller proportion (19%) actively contributing to their schemes. The trend is particularly pronounced for workers in the middle of their careers, according to Broadstone. Only 25% of women aged 35-44 contribute to their workplace DC pension, compared to 33% of men. At that age, men have a median occupational DC pot size of £12,000, almost double that of women who have £6,700 in their pots. The disparity is driven by career breaks for childcare, the company said. It pointed to research from the Pensions Policy Institute which highlighted differing working patterns as the biggest factor behind the gender pension gap. Women are more likely to take time off or work part-time where hourly pay is often lower, reducing their pension contributions and damaging progression to higher-paid roles later in their careers. The PPI estimated the career patterns alone cut women’s pension wealth by 47%, with the biggest impact occurring in their 30s – when many step back from work to care for children or family. 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. “The findings reflect a well-documented trend of women, on average, entering retirement with less wealth with factors such as childbirth and menopause forcing many out of the labour market or into part-time work and inhibiting future career progression.” She said the trend has inevitably led to women holding significantly smaller median occupational DC pensions, leading to fears of inadequate incomes in retirement. The Broadstone Wealth & Assets Survey was based on figures from the ONS, Household total wealth in Great Britain: April 2020 to March 2022: and a House of Commons Research Briefing, The Gender Pensions Gap: 1 August 2024

Men’s DC pension pots twice as large as women’s

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