The projected gap in the amount of cash that men and women are set to have in their private pensions at retirement has grown since last year, according to an annual report.
Scottish Widows estimated that the median total private pension wealth for women at retirement is £173,000 – £113,000 less than the average of £286,000 for men.
The average private pensions gender gap calculated last year at retirement was £100,000.
Scottish Widows estimated people’s retirement incomes based on their current wealth and their savings behaviour and some assumptions about factors such as how their income is expected to grow through their working life and when they will retire.
With women often taking on caring responsibilities, the research also indicated that more than half (58%) of women at or near retirement have taken a career break, compared with 12% of men.
It also found that two-fifths (40%) of women did not plan financially for their career break, and more than half (56%) never considered the impact it would have on their retirement.
The report said that while childcare is the “standout explanation” for career breaks, health and the menopause also play a role.
Women who had taken a career break were also more likely than men to say that it had reduced their ability to save, the report found.
Women were also found to be more likely to fall short of even a minimum lifestyle in retirement, with 36% estimated to be not on track, compared with 31% of men.
The forecast is benchmarked to a set of “retirement living standards” set out by industry body Pensions UK.
Susan Hope, a retirement expert at Scottish Widows, said: “To achieve true equality in retirement, we need to make sure career breaks don’t break women’s future financial security.
“There are a couple of straightforward ways to help address these gender pension concerns.
“We need to improve awareness and take-up of shared parental leave policies.”
She added: “Separately, spouses should be actively saving into women’s pensions during any career breaks, if possible.
“This is also known as third-party contributions and, while often overlooked, is a helpful financial planning tool.
“Not only can it maximise tax relief for those who have used up their allowance, this can help to plug gaps in pension contributions while earning power is limited.
“Employers also continue to play an important role in pension contributions during maternity leave.
“Fortunately for women, employer contributions in a workplace scheme are often calculated based on their pre-leave salary.”
YouGov carried out a survey of more than 4,000 people in August and September and a survey of more than 5,100 people in January and February across the UK for Scottish Widows.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown said: “Women are paying a huge price for shouldering the majority of caring responsibilities when it comes to their pensions.
“A mix of lower wages, part-time work and working gaps all conspire to make the gender pension gap a yawning chasm and there’s very little women can do about it without workplace reform to help them stay in the workforce.
“This can include the provision of good quality affordable childcare and more flexible working that will enable them to balance caring and work responsibilities more easily.
“It also shows the enormous impact that menopause can have on women’s retirement prospects. At a time when they might be in a position to start rebuilding their long-term resilience after time out of the workforce and lower wages, menopause has the potential to cause further damage.
“Again, a more flexible approach to working patterns could be a gamechanger in helping women navigate this challenging time and build their financial resilience.”
