Women who take career breaks face up to a £30,000 pension gap, new research from St. James’s Place has found.
According to SJP’s Women and Wealth 2026 report, more than half (56%) of women have taken time out of paid work, compared with 38% of men.
Among those taking childcare-related breaks, 42% of women are out of work for more than five years, compared with just 10% of men. The report found career breaks also extend to adult caring responsibilities, with almost three in 10 (28%) women taking an adult care-related break for more than five years.
However, these breaks were found to have a significant knock-on impact on pension saving. One in 10 women say they paused, stopped or reduced pension contributions during a career break, while the same proportion missed out on employer contributions.
Effects also continue after women return to work, with more than one in five (21%) choosing to return part time following a career break, while a similar number (19%) say taking a break left them feeling less financially secure.
SJP’s analysis shows a five-year break could leave women facing a pension shortfall of £30,925. Someone starting pension contributions at age 21, with combined employee and employer contributions of 8%, could have a projected pension fund worth £238,632 by age 68 but if they were to take a five-year break at age 30, their fund would drop to £207,707. Making up the difference would require pension contributions to increase from 8% to 9.72%.
Claire Trott, head of advice at St. James’s Place, said: “Career breaks are a normal and often necessary part of life. For women in particular, our research shows these periods away from work are both more common and often longer than those of men, meaning the financial impact can build up over time.
“It is easy to think about a career break mainly in terms of the income you give up while you are away from work. But there can be other effects too, from missing your own pension contributions and those from your employer, to losing out on potential investment growth. Returning on reduced hours can then make it harder to regain that lost ground.
“It’s not always possible to anticipate a career break but, when planning ahead is an option, it can help people understand and reduce any detrimental financial impact. Simple actions like reviewing pension contributions before and after a break, making the most of employer support, or putting a realistic catch-up plan in place when circumstances allow, can make a real difference over time.”
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