Value of pension pots up 16%; gender gap persists

The value of pension pots increased by 16 per cent over the past year, rising from £17,379 in March 2023 to £20,077 in March 2024, although the gender pension gap remains, analysis from PensionBee has found.

The research found that savers in the North West experienced the biggest increase in their pension wealth, with the average pot size rising by 18 per cent from £13,270 in March 2023 to £15,651 in 2024.

In contrast, savers in the South East continued to save the most into their pension, with an average pot size of £25,734, which surpassed the national average by 28 per cent.

Meanwhile, in Greater London, the average pension pot exceeded the national average by nearly a fifth (17 per cent) with the average pot standing at £23,393, which was attributed to London having the highest weekly income in the UK.

Despite the rise in the value of pension pots, the gender pension gap remained persistent across all regions, with women in Ireland facing the largest pension gap at 44 per cent.

The average retirement savings for men totalled £16,390 compared to £13,844 for women.

Although the gap is lower (29 per cent) in London than the government’s national gender pension gap figure (35 per cent), men’s retirement savings total £26,646 compared to women who saved £18,786.

Further analysis from PensionBee predicted the expected value of retirement pots for different age groups, which found that savers under 30 years of age are expected to retire with larger private pensions than people over 30.

The analysis found that on average, those under 30 could retire on a pot worth £195,058 by the time they reach 66, because of the accumulation of multiple pensions over their working lives and having a longer period left to save.

However, those aged 50 plus look set to retire with less, an average pot of £87,887 by age 66, despite having more financial needs.

Commenting on the analysis, PensionBee director of public affairs, Becky O’Connor, said: “Pension perseverance is paying off.

"Savers are diligently building their pots and appear to be prioritising pensions more than ever.

“This is great news for the retirement prospects of today’s workers, especially the younger cohort who will benefit from being under auto enrolment for most of their working lives.”



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