Imagine a family of four daughters and one son. All four daughters obtain degrees, are hard workers, with fiercely competitive streaks that are unsuited to family games of Monopoly. Yet, by the time they retire, these sisters are predicted to have 35% less in their pension pots than their brother. They face a higher risk of poverty in later life and may fall short of the £14,400 minimum retirement income recommended by the Pensions and Lifetime Savings Association (PLSA).
In this scenario, MicroFact’s co-founder is daughter number three. When first discovering the gender pension gap she was met with explanations like, “women are less financially confident and more risk avoidant”. It made her question, “was I really born with less pension potential than my younger brother?”
A historical lag, not a biological one
The truth is, the gap has been shaped by history, not biology. It stems from a system built around male breadwinners, where women were excluded, paid less, or penalised for career breaks, leaving behind today’s gap as the legacy.
In recent decades, reforms have made a difference. The married woman’s reduced National Insurance rate was phased out, carers became eligible for credits to protect their pension entitlement, and the 2016 flat-rate state pension was introduced. These changes have narrowed the gap, but they cannot erase a century of structural disadvantage.
Who wins when we close the gap? Everyone!
Addressing the gender pensions gap isn’t simply about fairness, it’s about opportunity. Greater financial security for women in later life eases pressure on families and the state, strengthens the economy, and unlocks the growth potential of women’s savings.
The World Economic Forum estimates that the financial services industry alone could boost global earnings by $700 billion if it better served women. Pensions play a key role in this, helping women gain independence and long-term security. Employers benefit too, with more engaged and productive teams, while society as a whole becomes more resilient. Raising women’s pensions lifts society as a whole.
How we’re closing the gap
At MicroFact, we believe education is the foundation of change. By breaking down financial jargon into playful, bite-sized lessons, we’re helping more women (and men!) build the confidence to make informed decisions about their money and their futures.
In a family game of Monopoly, there may be a battle over who gets the car, but ultimately all five siblings will start on “Go”. When it comes to pensions, nobody should be starting the game a few spaces behind.
