Millennial women are falling behind their male peers in retirement savings, with average pots of £49,608, some £36,000 less than millennial men, according to new research from Moneybox.
The findings suggest that men in the same age group have saved £85,529, which is a gap that could grow significantly over time thanks to compound interest.
It also found that Gen Z women have saved £28,854 on average, compared with £59,774 for men and this suggests a lifetime shortfall of millions by retirement.
Moneybox’s research suggests a confidence issue with women feeling more anxious, uncertain and overwhelmed about long-term finances than men. It found that around 40 per cent of women say they lack confidence in managing financial goals, with 29 per cent saying they are not in control of their financial future.
Meanwhile, this confidence gap is shaping behaviour. Around 30 per cent of millennial women avoid financial risk altogether, while only 18 per cent see losses as a normal part of investing. Moneybox says that while this caution may be understandable, it is limiting long-term growth and widening the gender pension divide.
Additionally, the consequences are personal and financial. Almost a quarter of millennial women say money worries affect their ability to make choices about their lives, highlighting the wider impact of the confidence gap.
Moneybox director of personal finance Brian Byrnes says: “This isn’t a capability gap – it’s a confidence gap. Many women are doing the right things, but fear of making the wrong decision or losing money stops them from engaging fully with their finances. Over time, doing nothing can be far more damaging than making small, informed moves.
“The biggest shift women can make isn’t taking huge risks, it’s building confidence to start, ask questions and stay engaged. Overcoming fear is often the first and most important step towards a more secure retirement. And through our expert led, AI powered Aurora engine, we can now help people feel less overwhelmed, make informed choices and plan for the future with greater confidence.
“Encouraging smart financial decisions shouldn’t be about pressure, but small, manageable steps that build confidence and a sense of control.”