Scottish Widows Report Finds Narrowing Gender Pension Gap
Scottish Widows reports the gender pension gap has fallen to £3,800, though 33% of women still risk retirement poverty due to systemic workplace inequalities.
The 2026 Women and Retirement report from Scottish Widows reveals that the gender pension gap in the United Kingdom has reached its narrowest point in three years. The gap fell to £3,800 in 2026, down from £6,000 in 2025, as the projected median retirement income for women rose by £1,500 to £14,500.
Despite this progress, significant financial risks persist. Approximately 33% of women and 30% of men who are not yet retired risk falling below the minimum income needed for a basic standard of living, defined as less than £13,900 annually for a single person. Furthermore, 65% of women remain on track for a minimum retirement standard or worse.
Data analyzed alongside Lloyds Banking Group indicates that disparities begin early in the workforce; 14% of women under 30 earn below the £10,000 threshold for automatic workplace pension enrollment, compared to 9% of men. Experts attribute these gaps to systemic issues such as menopause, relationship breakdowns, and unpaid caring responsibilities.
To address these challenges, Scottish Widows is calling for policy reforms regarding parental leave and pension protection in divorce settlements. The company has also launched a digital game called 'Chart Your Own Future' to increase financial engagement among young women.
