2024 pension contributions surge by £285, as gender gap widens

There 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.