Jessica O'ConnorThere was sharp increase in pension contributions in 2024, despite ongoing pressures on household budgets, analysis from PensionBee has revealed.
On average, savers contributed £285 (19%) more to their pensions in 2024 compared to 2023, taking the average up from £1,192 to £1,477.
This increase came even as households continued to navigate the effects of prolonged high inflation and interest rates.
Despite increased savings across the board, however, the difference in annual contributions between genders has widened.
In 2024, the total average pension contribution by men increased by £316 (23%), exceeding the £174 (18%) rise seen among women.
This disparity has pushed men’s average annual retirement savings to £1,662 per year, 44% more than women’s at £1,155.
This marked a notable increase from the 37% gap between annual contributions observed in the previous year.
Women continued to face structural challenges that impact their long-term savings, including lower average pay, career breaks, and unpaid caregiving responsibilities.
These factors contributed to a 38% gap between male and female pension pots in the UK.
Lisa Picardo, chief business officer at PensionBee, said: “It’s encouraging to see our customers prioritising saving for their future, even when things feel tight, but the widening gender contribution gap is a serious concern.
“Women already face challenges such as lower average pay, career breaks, unpaid caregiving responsibilities and lower lifetime earnings, plus they tend to live longer, making it even more critical that they can save effectively for retirement.
“The pensions industry still has a long way to go in enabling this, by making its products, content and tools more accessible and transparent to all savers, regardless of gender.”
She added: “PensionBee is committed to closing the retirement savings gap. In addition to making pensions simpler and more accessible, we’ve partnered with a range of female-focused organisations to provide tailored financial education to women and minority gender groups to broaden our reach.
“Our vision of a world where everyone enjoys a happy retirement is only possible if no one is left behind.”
