Mandatory gender pensions gap reporting within the Local Government Pension Scheme (LGPS) must be treated as a catalyst for meaningful action to close the gap between men’s and women’s pension outcomes, according to Hymans Robertson.

The firm said the introduction of compulsory reporting as part of the LGPS 2025 valuation cycle, with results due by March 2026, provided a crucial opportunity for funds to move beyond measurement and work more closely with employers to deliver practical, targeted support for women.

Hymans Robertson argued that funds should use the findings to support targeted interventions, including tailored, holistic financial education designed to address specific challenges women faced when engaging with their pensions.

The consultancy highlighted research showing that improving women's financial literacy could be a powerful tool for building confidence and helping individuals navigate pension decisions.

It added that collaboration between funds and employers should focus on clear, accessible communication and guidance that equipped women to better understand their overall financial position and make informed choices.

Hymans Robertson principal consultant, Greer Flanagan, acknowledged that progress was being made, but significant challenges remained.

“Effective engagement requires the recognition that pensions don't exist in isolation; women must also have confidence in managing daily financial challenges like debts and budgeting to secure better stability in retirement," she argued.

“Financial literacy and confidence levels are disappointingly low across the UK. As a result, people struggle to prioritise long-term planning when immediate financial pressures dominate their thinking.

"To tackle this, funds and employers should work together on financial education initiatives targeted at women.”

Flanagan added that coordinated, multi-employer approaches could have a meaningful impact, particularly within the LGPS.

“Holistic financial education that supports both short-term needs and long-term planning will ultimately drive stronger engagement by women in their finances and retirement planning,” she said.

“Co-ordinated multi-employer initiatives can make a real difference. When women understand the expected income their LGPS pension is likely to give, they are more likely to take practical steps, such as making additional voluntary contributions, which can help close the gender pensions gap.”

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