PensionBee has published its latest Pension Landscape for 2025, highlighting stark differences in retirement savings across age groups, genders and regions.
The study, which analysed the pension pots of more than 285,000 customers as of June 2025, shows that while savings are growing overall, inequality remains a persistent challenge, claims FinTech Finance.
The average pension pot in the UK now stands at £21,875, marking a 9% rise from last year and ahead of inflation. Women’s average pots grew by nearly 11% to £16,169, compared with a rise of over 9% for men to £25,652. This narrowed the gender gap fractionally from 38% to 37%, but men still hold far larger pots on average.
Every age group recorded gains, with under-30s seeing pots rise by nearly 5% to £3,745 and their gender gap narrowing from 18% to 13%. Among 30 to 39-year-olds, pots grew 5% to £10,660, with the gender gap at 20%. Savers in their 40s recorded more modest growth of 2% to £23,312, with a gender gap of 24%. The strongest growth came in the over-50s category, where pots rose nearly 8% to £42,578. However, this group also showed the widest gender divide at 44%, reflecting the long-term effect of unequal saving patterns.
Future retirement projections were mixed. For savers in their 30s, projected pots increased by £11,535 to £178,439, while those in their 40s could now expect £130,140, up £6,327. By contrast, under-30s saw their projected pots fall sharply by nearly £14,000 to £181,165, a decline linked to falling weekly incomes.
Regional disparities remain pronounced. Londoners have an average pot of £25,838, while those in the South East lead the nation at £27,727. By comparison, the North West averages £17,082, and Northern Ireland sits at just £15,118. London also has a narrower gender gap of 29%, while Wales and Northern Ireland report the widest at 43%.
PensionBee chief business officer UK Lisa Picardo said, “It’s encouraging to see both pot growth and a slight narrowing of the gender gap. But progress remains frustratingly slow and the regional disparities are stark. London savers have pots 70% larger than those in Northern Ireland, for example, which reflects broader economic inequalities that follow people into retirement.
“Even more concerning is that under-30s are seeing their projected retirement pots shrink due to falling incomes. This is a worrying warning sign for future generations who may end up heavily reliant on the State Pension.
“Lowering the Auto-Enrolment age threshold would be a simple yet powerful solution. The magic of compound growth makes early contributions incredibly valuable over longer periods. We cannot allow today’s contribution gaps to become tomorrow’s retirement poverty.”
The report underscores both the progress and the challenges facing UK savers, particularly the younger generation, as they confront a shifting retirement landscape.
Keep up with all the latest FinTech news here
Copyright © 2025 FinTech Global
