Women’s career breaks could cost more than £30,000 in pension saving

• More than half of women (56%) have taken a career break, compared with 38% of men, with women significantly more likely to take extended breaks for childcare
• One in ten women (10%) say they paused, stopped or reduced pension contributions during a career break, while the same proportion missed out on employer contributions
• Analysis from St. James’s Place brings the potential financial impact to life, showing a five-year career break at age 30 could leave a £30,925 pension shortfall by age 68

Career breaks are leaving a lasting mark on women’s finances, according to new research1 from St. James’s Place (SJP), which finds that more than half of women (56%) have taken time out of paid work, compared with 38% of men.

SJP’s Women and Wealth 2026 report reveals that women are also far more likely to take extended periods away from work for childcare. Among those taking childcare-related breaks, 42% of women are out of work for more than five years, compared with just 10% of men.

Career breaks are not confined to the years around having children. Adult caring responsibilities can also lead to lengthy periods away from paid work, with 28% of women taking an adult-care-related break for more than five years, compared with 17% of men.

Career breaks leave a lasting financial impact

The financial impact can extend beyond the earnings missed while someone is away from work. One in ten women (10%) say they paused, stopped or reduced pension contributions during a career break, while the same proportion missed out on employer contributions.

The effects continue after returning to work too. More than one in five women (21%) return part time following a career break, compared with 9% of men, while almost one in five women (19%) say taking a break left them feeling less financially secure.

Five-year career break could leave a £30,000 pension gap

Analysis from SJP brings the potential financial impact of these breaks to life, showing how time away from work can affect pension savings over the longer term.

Someone starting pension contributions at age 21, with combined employee and employer contributions of 8% of pay, could have a projected pension fund worth £238,632 at age 68 in today’s terms. Taking a five-year career break at age 30 could reduce that projected fund to £207,707 - a shortfall of £30,925.

Making up the difference after returning to work would require combined pension contributions to increase from 8% to around 9.72% of pay to restore the projected no-break outcome.

Planning can help women navigate career breaks

SJP’s research points to a clear difference in how women experience career breaks when they have ongoing financial advice. Women receiving advice are almost half as likely to say a career break left them feeling less financially secure, at 11% compared with 20% of those without ongoing advice. They are also more likely to say their break allowed them to reset (26% vs 18%) and gave them peace of mind (20% vs 13%).

Claire Trott, Head of Advice at St. James’s Place, said: “Career breaks are a normal and often necessary part of life, whether that is to care for children, support other family members or for other personal reasons. 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.”

Claire Trott shares practical checks to help women plan ahead:

Check employer policies before taking leave – Understand how maternity, parental leave and sick pay work, including whether enhanced pay or employer pension contributions will continue.

1. Check employer policies before taking leave – Understand how maternity, parental leave and sick pay work, including whether enhanced pay or employer pension contributions will continue.
2. Consider putting more away earlier – Where affordable, contributing more to a pension or investing earlier gives money longer to benefit from potential compound growth.
3. Review pension contributions before and after a break – Pausing or reducing contributions can affect long-term retirement savings, particularly where employer contributions are also missed. Review contributions on returning to work and consider whether there is scope to rebuild them over time.
4. Understand how salary sacrifice could affect maternity pay – Statutory Maternity Pay is based on average weekly earnings, so check how salary sacrifice arrangements, including pension contributions, could affect the amount received.
5. Check what support may be available – Women who do not qualify for Statutory Maternity Pay may be eligible for Maternity Allowance, while those caring for an adult family member may be able to claim Carer’s Allowance or Carer’s Credit.

6. Plan for a return to work that may look different – If returning part time or on a reduced income, revisit household cashflow, pension contributions and savings, and consider how any longer-term shortfall could be addressed when finances allow.

    

Notes to Editors:

1- SJP’s full Women and Wealth report is available here.

a. Opinium surveyed 6,000 UK adults nationwide between 17th March and 9th April 2026. Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population.

Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population.

2- *Illustrative example only. The analysis assumes an initial age of 21, pension age of 68, initial pay of £25,000, combined employee and employer pension contributions of 8% of all pay, inflation of 2%, pay growth of 3% and investment growth of 5%. The “restorative contribution” is the full combined contribution needed to achieve the no-break result. Actual outcomes will depend on individual circumstances, investment performance, contribution levels, charges, tax treatment and future earnings