The gender pensions gap in the LGPS: start earlier, engage better

The gender pensions gap in the Local Government Pension Scheme (LGPS) is real. But it's not simply a pensions problem. 

The gap we see at retirement reflects patterns built up over an entire working life. Pay plays a role, but it is only part of the picture. Working patterns, career breaks, caring responsibilities and levels of financial confidence all shape outcomes over time. If we want to close the pensions gap, we need to address the wider gender finance gap. 

This matters particularly in the LGPS. The scheme has around 6.7 million members, the majority of whom are women. Based on the GPG statistics quoted in the March 2025 English and Welsh valuation reports, combined with separate analysis we have carried out for a number of Scottish funds, a gap of 47% exists across the LGPS for pensioner members (that is, for every £1 paid to men, women receive 53p), and a gap of 34% for actives (for every £1 paid to men, women receive 66p). 

The drivers are structural and behavioural 

The causes of the gender pensions gap are well established. 

At a national level, the gap is driven by a combination of the gender pay gap and differences in working patterns. Women are more likely to work part-time, take time out of the workforce for caring and may experience slower career progression following these breaks.  

Within the LGPS, part-time working is a particularly important factor. The Scheme Advisory Board (SAB) found that differences in both current and historic part-time work explain a large part of the gap, although they do not fully account for it. 

Policy changes are helping. The move to a career average revalued earnings (CARE) structure and recent reforms to make periods such as unpaid maternity leave pensionable are positive steps.  But change will be gradual. Structural reform on its own will not close the gap quickly.  

Engagement is the missing piece 

One clear lesson from the private sector is that talking about pensions alone does not engage people. 

Most individuals focus on immediate concerns such as cost of living, housing or childcare. Pensions feel distant and abstract. If we start with pensions, many people disengage. If we start with real-life financial priorities, engagement improves. 

This is why awareness is essential but not sufficient. People need to understand the scale of the gap and how it applies to them personally. When the issue becomes tangible, behaviour starts to change. 

For LGPS funds, this means reframing the conversation. Pensions should be part of a wider financial wellbeing discussion, not the sole focus. 

Confidence and behaviour matter 

Another important factor is financial confidence. 

There is consistent evidence that women are less likely to feel confident making financial decisions, even where capability is similar. The Money and Pensions Service reports that women are less likely to understand pensions well enough to make decisions and more likely to lack a financial plan for retirement.  

The Financial Conduct Authority’s Financial Lives 2024 survey also shows that millions of people have low financial capability, which affects their ability to engage with financial decisions and services.  

These differences are shaped by experience, messaging and habit. Over time, they can lead to lower engagement, fewer proactive decisions and poorer long-term outcomes. 

This matters because many women will ultimately need to manage finances independently. By the time a woman is 60, she has a 3 in 5 chance of being single, divorced or widowed. Building confidence earlier in life is therefore a critical part of closing the pensions gap. 

A life-stage approach works 

In practice, engagement is often more effective when it reflects where people are in their lives: 

Early career 

Focus on immediate concerns such as debt, rent and affordability. These can act as entry points into longer-term planning, including early awareness of pensions. 

Starting a family 

Explain the potential impact of career breaks, reduced hours and contribution gaps, including how these may affect pension savings. Keep the implications clear and practical. 

Mid-career 

Introduce structured interventions such as Midlife MOTs, where appropriate. This gives people space to review their overall financial position, including pensions, and consider their future plans. 

Approaching retirement 

Shift the focus towards retirement timing, income and available options, helping people understand how their pension savings may support different outcomes. 

The key principle remains - people are more likely to engage when the message reflects their current priorities. Pensions remain an important part of the conversation but are often better understood when linked to what matters most to individuals at each stage of life. 

The LGPS starts from strength 

The LGPS has a strong foundation to build on. 

It is a defined benefit scheme, providing certainty and security that many private sector workers do not have. It also benefits from automatic enrolment and established employer structures.  

This means the challenge is not about fixing a weak system. It is about ensuring that all members can benefit equally from a strong one. 

For LGPS funds and employers, five practical actions stand out: 

1. Go beyond pensions and focus on financial wellbeing. 
2. Make better use of data to identify at-risk groups such as part-time workers and those with career breaks. 
3. Target key life events including maternity leave and return to work. 
4. Tailor communications to different life stages rather than using a single approach. 
5. Use employers as a key channel, embedding messages into existing communication points. 

Closing thoughts 

Closing the gender pensions gap in the LGPS is not about talking more about pensions. It is about understanding what drives the gap and responding in a way that feels relevant to people’s lives. 

That means focusing on behaviour, engagement and confidence, not just scheme design. The LGPS has a strong base. The opportunity now is to build on it with more targeted, more personalised and more practical support. 

If we do that well, we will not just reduce a gap. We will help more members make better financial decisions throughout their lives. 

If you would like to discuss further, please get in touch. 

Important information

This blog is based upon our understanding of events as at the date of publication. It is a general summary of topical matters and should not be regarded as financial advice. It should not be considered a substitute for professional advice on specific circumstances and objectives. Where this blog refers to legal matters please note that Hymans Robertson LLP is not qualified to provide legal opinion and therefore you may wish to obtain independent legal advice to consider any relevant law and/or regulation. Please read our Terms of Use - Hymans Robertson.