Women working in the private sector remain less likely than men to have a workplace pension, with 76 per cent enrolled in one in 2024 compared with 81 per cent of men.
This is according to data from the Annual Survey of Hours and Earnings (ASHE), which found that participation was equal at 90 per cent for both in the public sector.
Additionally, 19 per cent of workers had either an unknown pension status or no pension provision at all.
The data also shows that 34 per cent of those with a workplace pension were members of defined benefit schemes in 2024, which compares with 36 per cent in 2021 and 45 per cent in 2015.
Meanwhile, DC schemes made up 40 per cent of workplace pension membership, up from 36 per cent in 2021 and 26 per cent in 2015, while 25 per cent of employees were in group personal pension schemes.
Scottish Widows Retirement Expert Susan Hope says: “In addition to work, women give themselves tirelessly in their caring responsibilities, often at the expense of their own long-term financial health. The gender pension problem isn’t just a figure on a report; it is a reality that dictates the quality of life for millions of women at retirement.
“With the latest ONS stats finding more men than women are still opening a workplace pension, it is imperative that we equip women with practical tools like our Career Break Modeller to make informed decisions early on. Inaction costs women their future security, we must move from awareness to action. Two-thirds (65%) of women don’t currently invest their money, according to the latest research from Scottish Widows; however, when asked why, almost one in three (30%) women say nothing is getting in their way.”
Broadstone head of DC proposition Kelly Parsons says: “It’s encouraging that more than eight in ten employees are now saving into a workplace pension, underlining the lasting impact of auto-enrolment in bringing millions into retirement saving.
“However, with participation rates now largely stabilising, the next challenge is ensuring people are saving enough. The continued shift away from defined benefit schemes towards defined contribution arrangements places greater responsibility on individuals to build adequate retirement pots, making contribution levels and engagement increasingly important.
“While auto-enrolment has helped bring many more women into pension saving, these figures show that a participation gap remains in the private sector, moreover, one in five workers don’t have any pension provision at all. Closing that gap will require more targeted support and engagement with groups who are more likely to fall outside the system or contribute less.
“Employers have a crucial role to play here. Well-designed schemes, inclusive contribution structures and better support around key life events such as parental leave can help ensure workplace pensions work for a wider range of employees. Without continued progress, today’s participation gaps risk translating into significant inequalities in retirement.”
