British savers increased their pension contributions significantly in 2024 despite ongoing economic pressures, according to new analysis from online pension provider PensionBee. However, the findings reveal a concerning trend as the gender gap in retirement savings continues to widen.

The average pension contribution rose by £285 (19%) in 2024 compared to the previous year, increasing from £1,192 to £1,477. This growth occurred even as households navigated the lingering effects of high inflation and interest rates.

Yet beneath this positive headline figure lies a troubling disparity. Men increased their pension contributions by an average of £316 (23%), while women’s contributions rose by just £174 (18%). As a result, men now save an average of £1,662 annually toward retirement – 44% more than the £1,155 contributed by women. This represents a significant expansion of the gender pension gap, which stood at 37% in 2023.

The analysis highlights how structural challenges continue to impact women’s ability to save for retirement, including lower average pay, career interruptions, and unpaid caregiving responsibilities. These factors contribute to a 38% overall gap between male and female pension pots across the UK, a disparity that could worsen given the growing contribution imbalance.

"It’s encouraging to see our customers prioritising saving for their future, even when things feel tight, but the widening gender contribution gap is a serious concern," said Lisa Picardo, Chief Business Officer of PensionBee.

"Women already face challenges such as lower average pay, career breaks, unpaid caregiving responsibilities and lower lifetime earnings, plus they tend to live longer, making it even more critical that they can save effectively for retirement," Picardo added.

She emphasised that the pensions industry must do more to address these issues by creating more accessible products, content and tools for all savers regardless of gender.

PensionBee reports it is working to close the retirement savings gap through simplifying pension management and partnering with female-focused organisations to provide tailored financial education to women and minority gender groups.

"Our vision of a world where everyone enjoys a happy retirement is only possible if no one is left behind," Picardo concluded.