The size of someone’s pension pot is just as likely to be linked to their gender as their job. Although the Organisation for Economic Co-operation and Development estimated it at 24 per cent in 2025, some recent studies suggest the Irish pension gender gap is more likely north of 30 per cent, and some estimates even put it as high as 40 per cent.
Why do women still retire with less wealth than men? The reality is that career breaks, maternity leaves, lower lifetime earnings and differing investment behaviours continue to create a significant pension gap.
According to Susan Duffy, head of human resources and communications at Allianz Global Life, the gender pension gap “rarely has one single cause”. “It typically builds gradually across a woman’s working life ... over time, that can have a real impact, particularly as women tend to live longer and may therefore need their retirement income to stretch further.”
Linda O’Farrell, senior financial consultant at Marsh Ireland, says the pension gap is driven, not only by the gender pay gap, but also by the fact that women are more likely to take time out of the workforce at various points in their careers, often because of caring responsibilities. When women return to work, Duffy says, they may do so part-time or move into roles that offer flexibility. “Over time, that can mean fewer years of pension contributions, lower contributions or a break in contributions altogether.”
READ MORE
Ciara Ryan, head of wealth and general insurance at AIB, agrees the gender pension gap is driven by several factors and often starts much earlier than people realise.
“There is also a confidence gap around investing and financial planning, with many women focused on immediate financial priorities rather than regularly reviewing their pension or investment choices,” she says.
Women also tend to live longer on average, O’Farrell points out, meaning their pension savings may need to last longer in retirement. “These factors compound quietly over a working life, so the gap and its associated challenges often only become visible much later,” she says.
AIB’s Closing the Gender Pension Gap report found that women in Ireland typically retire with pensions worth 31 per cent less than men’s – equivalent to an average retirement income of around €299 a week for women, compared with €433 for men. “While this gap has narrowed from 37 per cent in 2018, it remains a key challenge affecting women’s financial independence and choices later in life,” Ryan says.
“Employers have an important role to play in providing clear information, encouraging pension engagement and supporting people through life stages such as maternity leave, caring responsibilities, career breaks and return-to-work periods,” says Duffy.
O’Farrell urges women to learn the details of their workplace pension scheme “from day one”. “Learn what you are contributing, what your employer matches, and how it is invested.”
Where possible, she says, the best approach is to stay ahead of the gap. “That means keeping pension contributions going during career breaks or periods of reduced hours, even if the amount is modest, and making sure you are receiving the full employer contribution available.” It is also worth reviewing how your pension is invested from time to time, she says, to make sure it still suits your retirement time frame and your appetite for risk.
But if a gap has already emerged, it can still be addressed. “Making extra payments, known as AVCs or additional voluntary contributions, can help when income allows. Some people might choose to direct bonuses or pay rises into their pension,” says O’Farrell. It can also help to discuss shared retirement goals with spouses or partners to ascertain whether the higher earner can increase contributions while the other takes a step back, she says.
The key is to engage with the issue rather than postpone or ignore it. “It is still worth understanding your options, even if retirement is close,” O’Farrell says. “Depending on your circumstances, you may be able to increase your pension through additional contributions, adjust your retirement date, reassess how much income you will need or plan to draw on other savings and assets.”
Ryan agrees, saying time is one of the greatest advantages when it comes to retirement planning. “But a pension should also evolve as a woman’s life does,” she says. “You may want to retire earlier, travel more, move home or reduce your working hours, and your pension plan should reflect those ambitions.”
“The key point is that the pension gap does not correct itself,” Duffy adds. “Research shows many women are anxious about retirement and often do not know what their pension is worth, which is understandable – but avoidance only makes the issue harder to address.”
Sometimes the answer is simply increasing contributions or reducing the fees that could be eroding the overall value of the pension. Ryan encourages women to speak to a pension specialist to get a clearer picture of how their pension is performing, what fees they’re paying and what it could provide in retirement: “all of which is crucial to identifying any gap and assessing what steps could help close it.”
