The pension contribution gap between men and women aged 30 - 45 has increased by an average of 3 per cent since 2022, data from Aviva has revealed.

Aviva’s workplace pension data for 5.5 million pension policies found that while the gender pension gap is closing, the rate of progress is slow and inconsistent across different age groups.

Indeed, the pension contribution gap between women and men over the past four years has decreased overall by around 1 per cent, while the gap for women over 45 years old has decreased by an average of 4 per cent.

However, men still contribute over a quarter (27 per cent) more than women to their pension savings every month.

The difference in pension savings between women and men starts at 20 years old, with a 15 per cent gap, and begins to widen significantly in the mid-thirties (22 per cent).

Aviva data also revealed that the gender pension imbalance can persist into retirement, with women aged 60 having pension pots that are, on average, 43 per cent less than men’s pots at the same age.

Aviva head of pension engagement, Laura Stewart-Smith said there were “positive signs” that the gender pension gap was closing, albeit slowly.

She suggested this progress might be because people are now more aware of the impact that career breaks or working fewer hours can have on workplace pension savings.

“However,” she continued, “the gender pension gap continues to persist for women in their thirties and early forties, and this could reflect a time of life when people often make significant choices about career and childcare.”

“Pension contributions are unlikely to be a deciding factor when considering whether to take a career break or reduce working hours, but anyone making these decisions should take the time to understand the long-term impact on their retirement savings,” Stewart-Smith argued.

“Good pension planning is key for people getting ready for a more comfortable retirement,” she added.

To address this widening mid-life gender pension gap, Aviva launched a new career break feature for its workplace pension members, which is now available to those checking their pension savings online through Aviva’s online portal or app.

As part of its retirement savings calculator, the new feature shows members the potential impact on their pension pots and retirement income if they were to have a career break or change their working hours.

Stewart-Smith said the feature was designed to help workplace pension members get ready for retirement planning by modelling changes to their pension contributions.

"This is an example of how we continue to innovate for our clients to ensure their employees have the tools which allow them to engage with their pensions today and plan for their future retirements,” she explained.

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