Millennial women could be left almost half a million pounds worse off in retirement than their male counterparts, as confidence and a 'fear of getting it wrong' continue to hamper engagement with long-term savings, analysis from Moneybox has revealed.

The survey found that Millennial women aged 30-45 had an average of £49,608 saved towards retirement - £36,000 less than Millennial men, who have built up £85,529 on average.

According to Moneybox, men in this cohort are currently 72 per cent better off and, if current trends continue, their pots could reach £463,644 by state retirement age, illustrating the significant impact of compound growth over time.

Meanwhile, among Gen Z savers (aged 14-29), women have saved £28,854 on average, compared to £59,774 for men - a gap of £31,000.

Over a lifetime, this disparity could translate into Gen Z women having £1,691,395 less than men by state retirement age.

Moneybox suggested that while pay differences remained a key driver of the pensions gap, emotional barriers were also playing a material role.

Indeed, the research highlighted the 'complex emotional load' many women carried regarding money and the compounding financial consequences of delaying decisions.

For example, women were far more likely than men to feel anxious (36 per cent versus 18 per cent), uncertain (22 per cent versus 15 per cent), and overwhelmed (24 per cent versus 12 per cent) about long-term finances.

In addition, two in five (40 per cent) women said they were not confident in managing or achieving long-term financial goals, such as retiring early or comfortably, while 29 per cent said they did not feel in control of their financial future.

As a result, three in 10 (30 per cent) Millennial women said they avoided financial risk altogether, potentially missing out on long-term growth, while just 18 per cent recognised that losses were a normal part of building wealth.

Almost a quarter (24 per cent) of Millennial women added that fears about financial security made them feel less free to make decisions about their future.

Moneybox director of personal finance, Brian Byrnes, said the issue was not a lack of capability but a lack of confidence.

“Many women are doing the right things, but fear of making the wrong decision or losing money stops them from engaging fully with their finances," he argued.

"Over time, doing nothing can be far more damaging than making small, informed moves."

Byrnes stressed that the biggest shift women could make wasn't taking huge risks; it was building confidence to start, ask questions, and stay engaged.

"Overcoming fear is often the first and most important step towards a more secure retirement," he explained.

“Encouraging smart financial decisions shouldn't be about pressure, but small, manageable steps that build confidence and a sense of control.”

Meanwhile, financial coach, Clare Seal, pointed to the psychological barriers that can prevent women from investing.

“Perfectionism paralysis is real and damaging,” Seal noted.

“We’ve been socially conditioned to believe that with money, 'safe' is better than 'sorry,' which leads to a deep-seated fear of the stock market due to its natural ebb and flow.

"I see that women worry about making a mistake, which in the long run can be even more costly than sensible and responsible investing."

Seal argued that to close this confidence gap, we have to help redefine risk - not as a danger to be avoided, but as a necessary tool for growth.

"Moving from a mindset of protection to one of participation is what ultimately transforms financial anxiety into wealth," she claimed.

“But also coming to terms with any mistakes and forgiving yourself for them is such an important step in shifting your money mindset away from anxiety and towards confidence - but it’s often one that is missed.

"In fact, I think people are sometimes afraid to forgive themselves or offer themselves compassion for fear of ‘letting themselves off the hook’ and falling back into old patterns of behaviour.

"But really, the opposite is true - you can’t truly move forward if you’re still angry with yourself for your past financial mistakes.”

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