Why the Gender Pension Gap Starts at Age 28
Published / Last Updated on 08/05/2026
Overview
New research from AJ Bell Money Matters shows the gender pension gap begins at age 28 — long before most people start thinking seriously about retirement.
This early divergence has a powerful compounding effect, leaving women with 48% less pension wealth than men by retirement.
1. Why Age 28 Is the Turning Point
At around age 28, many women experience a shift in financial priorities driven by major life events:
- Planning for marriage, children, or buying a home
- Managing student debt
- Increasing likelihood of career breaks or part‑time work
The ONS reports the average age of a first‑time mother is 29, meaning pension contributions often fall just as early investment growth should be accelerating.
2. The Structural Factors Behind the Gap
A. Career breaks and part‑time work
Between ages 29–40:
- 21% of women work part‑time
- 5% of men work part‑time
Reduced hours mean:
- Lower salary
- Lower employer contributions
- Lower personal contributions
- Less investment growth
B. Auto‑enrolment exclusions
Women are more likely to miss out because:
- Part‑time roles may pay below the £10,000 threshold
- Multiple part‑time jobs don’t combine earnings
- Self‑employed women receive no auto‑enrolment support
C. Pay gap effects
Women working full‑time earn 6.9% less on average.
Lower pay = lower contributions = a widening gap over time.
D. Maternity leave
During extended maternity leave:
- Women may pause contributions entirely
- Employer contributions may reduce or stop
- Lost contributions mean lost compounding
3. How Priorities Shift at 41
The research shows that by age 41, women begin prioritising pensions at similar rates to men:
- 29% of women (41–55) prioritise pensions
- 30% of men do the same
But the early‑career gap has already compounded.
A simple example:
- £100/month from age 41 → £42,500 after 20 years
- Continuing to age 67 → £66,700+
- Cost to a basic‑rate taxpayer: £80/month after tax relief
4. Key Takeaways for Clients
- The pension gap doesn’t start at retirement — it starts at 28.
- Early contributions matter more than any other factor.
- Career breaks and part‑time work have long‑term compounding effects.
- Auto‑enrolment thresholds disproportionately exclude women.
- It’s never too late to improve outcomes — but early action is most powerful.
Comparison Table: Gender Pension Gap: Causes and Timing
| Factor | When It Starts | Why It Matters | Impact on Pension Growth |
|---|---|---|---|
| Life‑event financial pressures | ~28 | Competing priorities (housing, children, debt) reduce pension focus | Lower contributions during high‑growth years |
| Career breaks | Late 20s–30s | Maternity leave and caring responsibilities interrupt saving | Lost contributions + lost compounding |
| Part‑time work | 29–40 | 21% of women vs 5% of men work part‑time | Reduced salary and employer contributions |
| Auto‑enrolment thresholds | Ongoing | Earnings below £10,000 exclude many women | No employer contributions; no tax relief |
| Gender pay gap (6.9%) | Early career | Lower pay = lower contributions | Gap widens every year |
| Self‑employment | Any age | No auto‑enrolment support | Requires proactive saving |
| Pension reprioritisation | 41+ | Women begin prioritising pensions equally to men | Helps close the gap but cannot fully offset early losses |