Why Career Breaks Are Pushing Women Into Pension Poverty – Shocking Stats Revealed

The Alarming Reality of Women's Retirement

More than a third (36%) of women face poverty in retirement, according to Scottish Widows' latest Women and Retirement Report 2025. This highlights a critical issue affecting millions.

How Career Breaks Widen the Gap

Research shows that over half (58%) of women at or near retirement have taken a career break, compared to just 12% of men. Women are 12 times more likely to take a break to raise children (36% vs. 3%), leading to significant loss of income and gaps in pension contributions.

By age 55, one in four (24%) women have been out of work for over five years, which could result in a £70,000 hit at retirement. For example, a woman taking a five-year career break at age 35 would have a pension worth £512,000 at 67—£69,380 less than those without a break, due to missed contributions and lost investment growth.

Financial Planning Challenges

While women manage money slightly better during breaks (61% vs. 58% for men), they are less likely to plan financially for career breaks. Key findings include:

• 40% of women didn't plan financially for their career break.
• 56% never considered the impact on retirement.
• 42% of women found breaks reduced their ability to save, compared to 37% of men.

The median total private pension for women at retirement is £173,000 vs. £286,000 for men, resulting in a gender pension gap of £113,000 (32%)—up from £100,000 (30%) last year.

Expert Insights and Solutions

Susan Hope, Retirement Expert at Scottish Widows, emphasizes the need for action: "Millions of women in the UK are living with the gender pension gap and they don’t even know it. To achieve true equality in retirement, we need to make sure career breaks don’t break women’s future financial security."

She recommends:

• Improving awareness and take-up of shared parental leave policies: 80% of women who had children in the last decade didn't use it, with 8% citing unsupportive workplaces.
• Spouses saving into women's pensions during breaks: Known as third-party contributions, this can maximize tax relief and plug gaps in contributions.
• Employers maintaining pension contributions during maternity leave: Many calculate contributions based on pre-leave salaries, offering crucial support.

Dame Denise Lewis (DBE), former Team GB athlete, adds: "Having stepped away from work for injury and family, I learned the importance of a financial plan for security. It's vital to start conversations about the future and affordability."