Steve Butler, Managing Director at Pension Potential, warns that women are being left financially exposed in retirement, following the latest Scottish Widows ‘Women and Retirement Report 2025[i]’, which shows that over a third (36%) of women are likely to face poverty in later life.
The report also highlights that the gender pension gap has widened from 30% to 32%, with the median pension pot for women now £113,000 smaller than men’s. This shortfall is driven largely by women taking career breaks, shouldering caring responsibilities, and experiencing lower lifetime earnings.
“This report is a wake-up call to the harsh reality women face in planning for retirement. Career breaks, caring responsibilities, and lower lifetime earnings leave too many women financially exposed at a stage when they should be building security,” Butler said.
“Over a lifetime, these pressures result in smaller pension pots and greater risk of running out of savings. More needs to be done to give women the confidence to plan better and make the most of the opportunities available in retirement to improve their financial security.”
Butler adds that annuities can be a good solution for those with smaller pension pots, providing guaranteed income for life, yet many women are less familiar with how they work and how to access the best deals.
Recent YouGov research conducted with 2,058 UK adults over 50 for National Annuity Day[ii] (21 October), launched by Pension Potential and supported by Aviva, L&G, and Standard Life, shows that many women are missing out ways to protect their retirement income.
While 52% of women said their priority in retirement is “comfort and freedom to enjoy life’s pleasures and cover unexpected costs” (compared to 46% of men), they are often less familiar with how to achieve this. Key findings include:
- Only 49% of women knew they could shop around for annuity deals, compared to 59% of men.
- Only 17% of women knew that being open about their health could lead to enhanced annuity rates, versus 27% of men.
- 60% of women were unsure if annuities offered any protection or adjustments for inflation, compared to 43% of men.
Butler adds: “Statistically, women live longer than men, which makes guaranteed income even more important. Annuities can provide income for life, offering a level of security that no other product can match. What’s striking is that this kind of stability is exactly what women say they want, yet many aren’t exploring annuities at all.
“Women need access to clearer information and guidance from employers and the pension industry. By engaging more effectively with women, there is a real opportunity to help close the gender pension gap and ensure more women achieve a secure and sustainable standard of living in later life.”
For more information on National Annuity Day, visit: www.nationalannuityday.org.uk/
For more information on Pension Potential, visit: www.pensionpotential.co.uk.
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About Pension Potential:
Pension Potential is part of Punter Southall, a professional services company specialising in pensions, insurance, law and retirement. Since 1988, Punter Southall have anticipated what clients need and evolved to deliver pragmatic solutions for people and business across diverse yet connected markets. Pension Potential offers guidance to help people understand their pension options. It also offers regulated financial advice through its Chartered Financial Planning team. Pension Potential is authorised and regulated by the Financial Conduct Authority.
