For most people, pensions are one of the biggest financial commitments they’ll ever make, shaping when they can afford to retire, how much income they’ll have in later life, and the lifestyle they’ll be able to enjoy. But new research from Wealthify has revealed a difference in how men and women differ when it comes to pensions — with women contributing to their pension earlier than men, yet feeling less confident and informed about their retirement planning.
Wealthify surveyed 1,000 working-age pension holders across the UK to understand how men and women differ in their pension habits and knowledge. The results show that two-fifths (42%) of women begin contributing to a pension before the age of 24, compared with a third (33%) of men. This early start could provide an advantage in the long run, due to the nature of money held in pensions being invested for additional years, but findings reveal that women are more likely to feel held back by a lack of confidence and understanding.
Almost one in eight women (12%) say a lack of knowledge has delayed or stopped them from contributing more to their pension, compared with 8% of men. One in five people surveyed (21%) wish they’d learned how pensions work earlier in life, and nearly two-thirds (64%) wish they’d taken their pension more seriously when younger.
Understanding pension terms plays a key role in this confidence gap. Women are twice as likely as men to say they don’t understand any pension terms at all (24% vs. 12%), while also showing lower understanding of several key terms that regularly feature in pension paperwork and policy debates. For example, just 9% of women understand “volatility” compared with 21% of men, while “triple lock” is understood by 10% of women and 21% of men. Similarly, terms such as “drawdown” and “annuity” show a ten percentage point gap between men and women.
This combination of starting early but feeling less knowledgeable highlights an overlooked element of the wider pension gender gap. While women may be taking positive steps by investing for retirement earlier, a lack of understanding around key terms potentially risks leading to more cautious and potentially less beneficial decisions about contributions, investments, and withdrawals. Without confidence in what the terms mean and making further contributions to their pension pot, the financial advantages of an early start may not translate into stronger outcomes later in life.
Jessie Kwok, Chief Investment Officer at Wealthify, comments:
“Our research shows that women are taking action earlier than men when it comes to saving for retirement, but they’re not getting the full benefit of that head start because they feel less informed and less confident about pensions overall.
“Confidence and knowledge go hand in hand. If someone doesn’t understand the terminology in their pension paperwork, they could be more likely to second-guess themselves or make overly cautious decisions. That could mean missing out on valuable allowances, delaying contributions, or feeling unable to take control of their financial future.
“The good news is that this is a gap we can close. By explaining pensions in plain English and making education accessible, we can help women build confidence and ensure their early saving habits truly pay off when it matters most.”
