More than a third of UK women (36 per cent) are on course to fall into poverty in retirement, according to the latest Scottish Widows Women and Retirement Report, which found that career breaks remain one of the most significant drivers of the gender pension gap.

The research showed that women approaching retirement were far more likely than men to have taken time out of the workforce, with 58 per cent of women at or near state pension age reporting at least one career break, compared to just 12 per cent of men.

Women were also 12 times more likely to have taken a break to raise children (36 per cent versus 3 per cent).

Scottish Widows stressed that these breaks have long-term financial consequences, with its research finding that by age 55, one in four women (24 per cent) had been out of work for more than five years in total - a gap that could reduce their retirement pot by around £70,000.

Indeed, a woman taking a five-year career break at age 35, for example, is projected to reach age 67 with £512,000 in pension savings, almost £70,000 less than a woman who remained in continuous work.

The research explained that the impact reflects not only missed contributions but also the lost compound investment growth that builds over time.

The findings come amid a widening gender pension gap, with the median private pension for women at retirement now £173,000, compared to £286,000 for men.

This leaves a £113,000 (32 per cent) gap, up from £100,000 (30 per cent) in last year’s report.

A recent report by Now Pensions and Stand suggested that a combination of low awareness, financial insecurity, and structural inequality is driving this gap, which it said begins "as soon as working life does".

Notably, Scottish Widows' research revealed that despite managing their money “slightly better” during breaks than men, women were less likely to plan for them.

Indeed, two-fifths (40 per cent) of women said they did not prepare financially for their absence from work, more than half (56 per cent) reported never considering the impact on their retirement savings, and four in ten stated that their break reduced their ability to save altogether.

Scottish Widows retirement expert, Susan Hope, warned that the findings highlighted structural barriers that still shaped women’s financial futures.

“Millions of women in the UK are living with the gender pension gap and they don’t even know it,” she said.

“To achieve true equality in retirement, we need to make sure career breaks don’t break women’s future financial security.”

Hope called for stronger awareness and take-up of shared parental leave, which she argued remains “critical” but underused.

Indeed, the report found that 80 per cent of women who had children in the last decade did not use shared parental leave, and eight per cent said their spouse’s workplace was not supportive of the policy.

Hope also urged households to consider “third-party contributions”, where a partner pays into the pension of the parent taking time out of work.

“While often overlooked, this can plug gaps during a career break and maximise tax relief,” she added.

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