BY JOHN ELLIS, FINANCIAL ADVISOR
New research from Aviva Life & Pensions Ireland has thrown a spotlight on a stark reality facing many women as they approach retirement. There is a 31% gender pension gap. According to the study of working adults over 50, women are retiring with significantly less saved than men, a shortfall that would require an extra 10 years of work to bridge.
The figures are concerning. Nearly two-thirds (65% ) of women over 50 have never calculated how many paydays they have left until retirement, compared to 53% of men. More than half (55%) feel anxious at the very thought of retiring. Alarmingly, 58% do not know what their pension is invested in, and 55% have no idea what it is even worth. They are also far less aware of tax reliefs on private pensions (65% unaware v. 44% for men).
Women typically start pension saving later, at an average age of 35.3 compared to 32.7 for men and are almost twice as likely to begin only at 50 or older. They are more likely to work part-time (23% v. 7% ) and shoulder unpaid caring responsibilities (36% v. 26%). The result is less money going in over fewer years.
Aviva identifies four interconnected areas, in pension savings themselves – knowledge, confidence and professional advice. Only 29% of women feel confident making investment decisions versus 53% of men. Just 61 per cent have seen a financial advisor, with many believing advice is more geared towards men.
As highlighted in The Economist, Nobel laureate Claudia Goldin and newer studies suggest that motherhood and the anticipation of it account for almost the entire gender wage gap. Without the career interruptions and choices shaped by family planning, women’s earnings trajectories mirror those of men. Yet, for the majority who do have children, the wage penalty explains smaller pensions later.
This is why the incoming EU Pay Transparency Directive is so important. Due for implementation in June 2026, it will force companies to disclose pay by gender. It will ban questions about previous salaries in interviews. And require action plans where unexplained gaps exceed 5%. It promises to tackle the problem at source.
Yet, in Ireland, preparation is lagging. Only 9% of employers have strategies ready, says Mercer, and the Department of Equality has confirmed a phased rollout because full legislation would not be ready. Employers will not face immediate penalties, but business group Ibec is calling for more certainty while unions urge faster action.
This research is a wake-up call rather than ‘a counsel of despair’. Biology and family choices play a significant role, but ignorance and inertia make the problem worse. Women deserve better support from shared parental leave and affordable childcare to straightforward financial education. Aviva’s Women Tackling Finance hub, with its short videos on pensions and investing, shows how simple steps build confidence.
The most powerful step any of us can take is to talk to a financial advisor and start planning now. Greater transparency from employers, combined with personal action, can help close these gaps.
A fairer retirement system is not simply good for women. It strengthens families and society as a whole. With fewer paydays ahead, the time to act is today.
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