The gender pensions gap has fallen to £3,800 from £6,000 in 2025, although almost two-thirds (65 per cent) of women remain on track for a minimum retirement standard or worse, research from Scottish Widows has revealed.

The 2026 Scottish Widows Women and Retirement Report found that women's projected median annual retirement income had increased by £1,500 over the past year to £14,500, marking the strongest outlook since the provider's National Retirement Forecast began three years ago.

However, this remained below the £18,300 projected for men, with just over a quarter (27 per cent) of women on track for a comfortable retirement.

Meanwhile, a third (33 per cent) of women were found to be at risk of retirement poverty, defined in the research as an income of less than £13,900 a year for a single person or £22,500 for a two-person household.

Scottish Widows attributed the narrowing gender gap to reduced gender pay gaps, higher state pension entitlements, and growth in women's other savings.

Despite this progress, the report highlighted persistent barriers to women's retirement savings, particularly during the early stages of their careers.

Indeed, analysis of Lloyds Banking Group and Scottish Widows customer data revealed that 14 per cent of women under 30 earned below the £10,000 automatic enrolment (AE) threshold, compared with 9 per cent of men, potentially missing out on employer pension contributions and early investment growth.

The research also found that 71 per cent of women aged 22-25 with a Scottish Widows workplace pension contributed 10 per cent or less of their pay, compared with 64 per cent of men.

Women were also less likely than men to contribute more than 15 per cent of their earnings across every pay band.

Scottish Widows retirement expert, Jill Henderson, welcomed the narrowing gap but stressed that further action was needed to address the inequalities affecting women's retirement outcomes.

"The fact that the gender pension gap is at its narrowest point since the National Retirement Forecast began is proof that progress is possible," she said.

"More women than ever are building towards genuine financial resilience in later life.

"Change must happen faster. Too many women face a retirement of financial hardship, with life events such as unpaid caring responsibilities, menopause and relationship breakdowns disrupting their ability to save."

Meanwhile, Scottish Widows retirement expert, Susan Hope, argued that addressing the gender pension gap would require wider changes to workplace practices and pension policy.

"Our data shows that the pension gap takes root from a woman's very first job," she noted.

"But closing it requires more than better awareness - it means fundamentally changing the systems that shape women's financial futures.

"From pension enrolment and parental leave to support through divorce, menopause and illness, policy and workplace changes must better reflect women's lives and help them build financial security at every stage."

In response to the findings, Scottish Widows called for further reforms to AE, greater consideration of pensions in divorce settlements, and improved support for women facing changes in employment or caring responsibilities.

The provider also urged employers to use pension scheme data to identify savings gaps early, improve financial education among younger workers and encourage greater sharing of caring responsibilities between men and women.

Scottish Widows argued that these measures, alongside improved digital engagement, would be essential to sustaining progress in narrowing the gender pension gap and improving retirement outcomes for future generations.

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