Aviva has launched a new career break feature for its workplace pension members, which is now available to those checking their pension savings online through Aviva’s online portal or app. As part of its retirement savings calculator, the new feature shows members the potential impact on their pension pots and retirement income if they were to have a career break or change their working hours.
Laura Stewart-Smith, Head of Pension Engagement at Aviva, said: “We’re proud to launch our new career break feature, which is designed to help our workplace pension members get ready for retirement planning by modelling changes to their pension contributions. This is an example of how we continue to innovate for our clients to ensure their employees have the tools which allow them to engage with their pensions today and plan for their future retirements.”
This comes as the latest pension contribution data (published today) from leading workplace pension provider Aviva (2) has found the gender pension gap is closing, but the rate of progress is slow and inconsistent across different age groups.
Based on Aviva’s workplace pension data for 5.5 million pension policies, on average men contribute over a quarter (27%) more than women into their pension savings every month. The pension contribution gap between women and men over the past four years, since 2022, has reduced overall by around only 1%. The gap for women over 45-years-old has reduced by an average 4%.
However, the gap has increased for women aged between 30 and 45-years-old by an average 3%.
This is in line with the record highest average age of mothers having children, which is now just over 30–years-old. Women (36%) are also more likely to work part-time than men (14%.
Taking a career break or reducing working hours can impact pension contributions.
The difference in pension savings between women and men starts at 20-years-old, with a 15% gap. It begins to widen significantly in the mid-thirties (22%). The amount paid in pension contributions can have a significant impact on retirement income and the gap increases consistently over time, all the way through to retirement, with the gap at its widest from around 60-years-old (Table 1).
Table 1: Aviva – gap between women and men’s pension contributions
| Age Range | 2022 | 2023 | 2024 | 2025 | 2022 v 2025 |
| % Gap | % Gap | % Gap | % Gap | Change in % | |
| 20 – 24 | 13% | 15% | 16% | 15% | 2% |
| 25 – 29 | 16% | 15% | 15% | 14% | -2% |
| 30 – 34 | 15% | 17% | 18% | 17% | 2% |
| 35 – 39 | 18% | 21% | 22% | 22% | 4% |
| 40 – 44 | 23% | 24% | 25% | 25% | 2% |
| 45 – 49 | 29% | 27% | 28% | 27% | -2% |
| 50 – 54 | 35% | 32% | 33% | 32% | -3% |
| 55 – 59 | 40% | 35% | 40% | 38% | -2% |
| 60 – 64 | 45% | 38% | 41% | 41% | -4% |
| 65 + | 49% | 39% | 40% | 41% | -8% |
| TOTAL | 28% | 26% | 28% | 27% | -1% |
Aviva data also found the gender pension imbalance can persist into retirement with women from 60-years-old having pension pots which are on average 43% less than men’s pots at the same age. Aviva’s Working Lives Report (2024) found over almost two in five (38%) of women said their pension will not provide enough for a comfortable retirement, compared to a quarter of men (25%).
Laura Stewart-Smith said: “There are positive signs the gender pension gap is closing, albeit slowly. This progress might be because people are now more aware of the impact that career breaks or working fewer hours can have on workplace pension savings. However, the gender pension gap continues to persist for women in their thirties and early forties, and this could reflect a time of life when people often make significant choices about career and childcare.
“Pension contributions are unlikely to be a deciding factor when considering whether to take a career break or reduce working hours, but anyone making these decisions should take the time to understand the long-term impact on their retirement savings. Good pension planning is key for people getting ready for a more comfortable retirement, which is why we have launched our career break feature.”
