Entrenched structural inequalities, rather than a lack of financial confidence, are the primary drivers of the UK's gender pensions gap, according to a study from the University of Edinburgh.

The report warned that women were retiring with significantly smaller pension pots than men due to systemic, social, and situational factors that limited their ability to save and engage with long-term financial planning, and called for a rethink of pensions policy and financial advice to address the growing retirement “gulf”

The study found that by age 60, men had, on average, accumulated 75 per cent more in their pension pots than women, a disparity the authors said could not be explained by confidence or financial literacy alone.

Instead, lower earnings, career breaks linked to caring responsibilities, part-time work, and the disproportionate burden of unpaid labour were highlighted as key contributors.

Analysis cited in the report showed that nearly 15 million people in the UK were not saving enough for retirement, according to the Department for Work and Pensions (DWP), with women disproportionately affected.

DWP figures showed men held a median of £75,000 in defined contribution (DC) pension wealth by age 59, compared with £19,000 for women.

The report also pointed to evidence from the Office for National Statistics (ONS) showing women spent, on average, an extra hour a day on childcare and housework compared to men, and carried out around 73 per cent of the 'mental load' associated with organising family life.

Authored by Edinburgh Futures Institute associate, Emily Shipp, the report challenged what it described as an overreliance on the 'confidence gap' narrative in financial services and media commentary.

“For too long, the ‘confidence gap’ narrative has masked the real systemic, situational and social factors that result in the pensions gulf,” Shipp warned.

“Mental load and time scarcity operate together, reducing both the mental bandwidth and the available time needed for sustained engagement with long-term financial planning.”

She added that pension policy and financial advice had historically been designed around linear, uninterrupted careers, failing to reflect the multi-phase working lives many women experience.

“Redesigning pensions policy and financial environments to better serve more varied priorities and life courses would better serve all genders as we move towards longer, multi-phase lives,” Shipp said.

The report also highlighted the increasing complexity of DC pensions, noting that decisions around fund choice, contribution levels, and consolidation required active engagement beyond a “set and forget” approach, which was poorly understood by much of the population and can exacerbate disparities in retirement outcomes.

Supporting the research, Evelyn Partners argued it underlined the need for a more inclusive approach to financial planning.

Evelyn Partners chief financial planning officer, Emma Sterland, said the "thought-provoking" insights challenged entrenched narratives around women and wealth, shining a light on the complex structural barriers that women face as they build their financial security over a lifetime.

Meanwhile, Edinburgh Innovations fintech sector lead and Compassion in Financial Services Hub co-director, Tobi Schneider, warned that failure to act could have serious long-term consequences.

“With an ageing population, without action, we are sleepwalking into financial disaster for a large proportion of people,” he said.

---