Mind the Gap: Only 8% Of Women Say They Fully Understand Their Pension

72% Of Employees Want More Pensions Education From Their Employer

The good news? Employees want to know more. 72% of UK workers say they’d welcome more pension guidance from their employer – a strong mandate for businesses to act.

Women are especially in need of targeted support. When we look at the areas employees most want help with, financial planning and understanding salary sacrifice schemes rank at the top:

• Financial planning and saving enough for retirement (56%)
• Practical steps for drawing out your pension (48%)
• Salary sacrifice (48%)
• The tax benefits that come with pensions (44%).

Given that over half of employees would increase contributions if their employer matched them, and that women are less likely to know about these opportunities, a lack of education is actively costing women potential retirement income.

The Business Case for Better Pension Education

Don’t underestimate the influence you have as an employer. Lack of education is the main factor in the gender pension gap, but employees are crying out for knowledge – presenting you with a real opportunity to engage your team. And it’s not just about doing the right thing: it’s good business, too.

• Enhanced pensions were among the top three most-wanted benefits in our 2025 Employee Benefits And Workplace Satisfaction Survey
• 58% of employees would take a bigger pension over other perks
• 84% say a good pension is an important factor when considering a new job.

By prioritising pension education – especially for women – you not only support financial wellbeing, but also increase retention, attract better talent, and demonstrate a genuine commitment to equality.

Turning Knowledge Into Action For The Women In Your Workforce

You don’t need to overhaul your entire benefits package to make a difference. Small, consistent efforts to educate and engage can go a long way – particularly when they’re designed to close the knowledge gap for underrepresented groups.

1. Target Your Communications

Send out regular, accessible communications about your pension scheme – but go further by tailoring your messages. For example, offer sessions specifically for women on how to maximise contributions after a career break or part-time work.

2. Run Pension Education Workshops

Hosting short, focused workshops is a powerful way to boost pension understanding across your workforce. These sessions work best when they’re jargon-free, practical, and tailored to real-life concerns — from how pensions work to making the most of tax relief and employer contributions.

Consider partnering with your employee benefits consultant to deliver them. Their expertise can help bring clarity to complex topics, answer employee questions with confidence, and ensure the information shared is accurate, up to date, and engaging. Whether delivered in person or virtually, workshops create a valuable opportunity for employees to build confidence in their long-term financial wellbeing.

3. Make Salary Exchange Clear and Simple

Despite its tax-saving potential, 80% of employees either don’t use Salary Exchange or don’t know if they do. Exploring this option and/or communicating the method could significantly boost pension value for female employees. Read more about the tax-efficiencies that come with Salary Exchange Pensions.

4. Make Investments Accessible

Many employees struggle to engage with their pension investments simply because they don’t know where to start. From fund choices to risk levels, the investment side of pensions often feels overwhelming or out of reach.

This lack of clarity matters — especially as employees show increasing interest in where their money is going. For example, 70% say it’s important their pension is invested ethically, yet only 18% know how to access these types of funds.

Providing clear, simple information through an employee benefits platform can demystify investment options and give employees the tools and confidence to make informed decisions about their future — including investing in ways that align with their values.

Richard Noble
Senior Consultant, Employee Benefits

5. Promote Matched Contributions

With 48% of employees willing to increase contributions if their employer matches, this is one of the most powerful tools in your pension toolkit. Make sure employees understand how it works and who’s eligible. It can be especially impactful for women, many of whom may not realise how much of a boost this offers.

Don’t Let Half Your Workforce Fall Behind

Workplace Pensions are one of the most valuable benefits you can offer, but your employees need to truly understand them to value them. Right now, more than half of your workforce doesn’t. For women, the stakes are even higher.

In a time when financial security is becoming harder to achieve, closing the pension knowledge gap is one of the most impactful actions an employer can take. The women in your workforce are already at a disadvantage when it comes to lifetime earnings and pension accumulation. But you have the power to change that through clear communication, targeted support, and smart benefit design.

Want to help your employees understand their pension scheme? We offer tailored pension education, scheme reviews, and communication strategies to help close the knowledge gap and maximise the value of your Workplace Pension. Call us on 02074425880 or email help@drewberry.co.uk to get started.

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