4 ways women could boost their financial confidence and close the pension gap
Women in the UK are falling behind on their pension savings. While there are numerous factors that are contributing to this gender pension gap, an article from TUC (March 2023) shows that not only are women paid 14.9% less than men on average, but they’re also more likely to take career breaks due to caring commitments.
An article from Pensions Age (February 2026) also reported that women aged 30 to 45 have £36,000 less saved for retirement on average than men in the same age group.
A Moneybox study cited in the article also suggested that a “fear of making the wrong decision or losing money” could also be holding some women back from fully engaging with retirement planning.
The study found women were more likely to feel anxious, uncertain, or overwhelmed about long-term finances. With 40% of women surveyed saying that they didn’t feel confident about managing or achieving their long-term financial goals.
With Legal & General (April 2025) stating that the Gender Pension Gap stands at 12.8%, read on to learn four ways that women can use to help build their confidence and allow them to close the gender pension gap, setting aside enough for the retirement that they could be dreaming of.
1. Combat self-doubt by building up knowledge.
It is hard for anybody to feel confident about their finances if they don’t understand how they work, and with women holding the minority of jobs in the financial sector, this can feel especially true for them.
By investing time in learning the basics of how pensions work, and by building up general financial knowledge, this can translate into a greater degree of confidence when looking after the savings that are earmarked for your retirement.
Here are some common terms explained to help get your research started:
Tax relief: When contributing to your pension, the government will return the income tax you paid on those earnings via a top up direct to your pension, up to 100% of you annual earnings or £60,000, whichever is lower.
Salary sacrifice: A salary sacrifice pension is a tax-efficient arrangement where, by agreeing to reduce your gross salary, you employer pays that amount directly into your pension, saving both parties on National Insurance (NI).
Investments: Investments in a pension typically refer to how your money is held within the pension scheme, this is normally in some kind of fund. Investment growth is exempt from tax.
Compound returns: As an Investment generates gains or losses over time, these gains or losses will be included in the investment amount and then can proceed to make further gains or losses in the future.
Tax-free lump sum: A cash withdrawal that can be made from a pension pot that is exempt from income tax. This is usually up to 25% and is available from age 55 (rising to 57 in April 2028). The remainder of your pension will then usually be subject to income tax if you withdraw from it.
Normal minimum pension age: Also shortened to NMPA, this is the earliest age that most individuals can start to withdraw money from their pensions. This is currently 55 and, for most, will rise to 57 in April 2028.
The legislation surround pensions is not a long-term stable set of rules, and can change periodically, so it is always best for you to research each of these area thoroughly to help build up your knowledge and make sure that you understand exactly what Is going on so you can be confident in the decisions you want to make.
2. Start small and grow with success.
Getting started with retirement planning can be overwhelming. Starting with small steps can help make the process feel more manageable.
For example, begin by tracking down your pension(s) and finding out how much is invested in them.
By monitoring your success over time, this can help to build up your financial confidence. As you watch your pot grow, you may feel encouraged to go further. For example, you could increase your contributions or explore other tax-efficient strategies to help accelerate your pot’s growth.
3. Get to grips with the technology available
Historically sorting out your pension meant going through reams and reams of paper to fill out an application form or holding on for ages on a telephone call waiting to get through to an actual human being.
Thankfully, now most Providers have caught up with the 21st century and have developed their own platforms and tools online.
Getting to grips with these might seem like a challenge, but often the same Providers will give you guides and support systems online to help you achieve what you want. Whether this is getting a valuation, adding a contribution into your policy, or wanting to take a look into what your pension is invested in, this can now be done online for the vast majority of pensions.
On top of that, there are plenty of other tools online too, from the government’s pension tracing service to cashflow modelling services that allow you to simulate various scenarios to help you work out if you need to change your strategy to meet your goals.
Utilising all of this will not only allow you to help deal with your pension without anywhere near as much fuss as you used to worry about, but by getting to grips with all the tools available you might find your financial confidence growing as you can feel more on top of your pension (and other investments) than ever before.
One financial tool that you could get to grips with straight away is MWA’s Personal Finance Portal, where your plans valuations are available, you can set up and manage your own goals and you can securely message your Adviser with any questions or queries you might have.
4. Get support from a financial adviser
Unfortunately, there are only so many hours in the day, and when combined with everything else, you might not be able to find as much time to look after your pension(s) as you might like, especially if you have multiple pensions that you are trying to look after.
Thankfully, there is always support just around the corner, as a financial adviser is specifically located to help you with looking after your pensions, and helping make what might seem complex simple and easy for you to understand and manage.
For example, by working alongside a financial adviser you might be able to look into those multiple pensions and work out if consolidating those pensions into one would be appropriate and finding the best place to put them, for both you and the pensions themselves.
Taking the time to understand your goals, concerns, and financial circumstances, we can create a retirement plan tailored to you. We can calculate how much you could need to save for your ideal retirement, taking inflation and tax into account, and create a plan to help you achieve your goal.
Get in touch
For support in getting your pension savings on track for your ideal retirement, get in touch with our financial advisers.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.