Why women retire with less and the proven ways to change the outcome

Across advanced economies, women retire with around 25% less pension income than men. The gap doesn’t appear overnight; it accumulates through career breaks, part-time work, and uneven pension contributions, often only becoming visible when it’s hardest to fix.¹

International Women’s Day, on 8 March, is a moment to celebrate progress, but also to take practical steps toward better financial security. This year’s global theme, ‘Give to Gain’, is a reminder that sharing knowledge can create real, lasting impact. At Lombard Odier, we aim to build women’s financial confidence by helping clients make informed decisions at every stage of life, from first jobs to retirement and beyond.

The need is clear. Even in Switzerland, the gender pension gap is close to 30%, meaning women tend to retire with around one third less in retirement savings than men. The challenge isn’t limited to older generations. For Millennials and Gen Z, financial pressure is already reshaping expectations and behaviour. More than a third struggle to cover monthly expenses, over half live pay cheque to pay cheque, and many already worry about retirement adequacy.² Building resilience early matters because the foundations of retirement security are laid earlier than most people realise.

International Women’s Day, on 8 March, is a moment to celebrate progress, but also to take practical steps toward better financial security

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Financial security is built in stages

Women’s financial lives often follow distinct rhythms: education, career development, family formation, caregiving responsibilities, entrepreneurship, and, frequently, part-time work. Each decision can be meaningful on its own; combined over time, these choices shape long-term pension outcomes. The most effective approach is lifelong: start early, review regularly, and adapt your plan as life evolves.

In our full report, we explore three broad life stages, highlighting what to prioritise at each point:

1. Starting out
2. Mid-career and family formation
3. Pre-retirement and transition

Retirement planning isn’t one size fits all. Systems differ widely across countries, and so do the risks and opportunities for women

But retirement planning isn’t one size fits all. Systems differ widely across countries, and so do the risks and opportunities for women. Below is a snapshot of key features in the jurisdictions covered in the report, with a common thread: proactive planning matters most when careers are interrupted, contributions are uneven, or legal protections aren’t automatic.

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A cross-country snapshot: what to know (and where women can gain an edge)

Switzerland: powerful tools if activated early

Switzerland’s three-pillar structure combines a basic state pension (Pillar 1), occupational schemes (Pillar 2), and voluntary tax-advantaged savings (Pillar 3). Many of the most impactful levers depend on consistency: avoiding contribution gaps, understanding your pension plan rules, and investing retirement savings rather than leaving them idle. Mid-career, part-time work can reduce pension accruals disproportionately due to technical features such as coordination deductions, making simulations and plan reviews essential before changing workload. Later in life, strategic decisions around annuity versus capital, and the timing of withdrawals, can materially influence outcomes.

France: solidarity, but personal savings are crucial

France relies primarily on a pay-as-you-go approach, combining a basic pension with mandatory complementary pensions (points-based), and optional personal saving vehicles. Recent reforms raised the legal retirement age to 64 and require 43 years of contributions for a full pension. While the system provides broad coverage, it can penalise interrupted careers, increasing the importance of building personal savings alongside statutory entitlements. Vehicles such as the PER and life insurance can play complementary roles, balancing tax efficiency, flexibility, and estate planning considerations.

Belgium: a familiar three-pillar logic with added flexibility

Belgium also combines a statutory state pension, occupational schemes, and individual savings, with entitlements influenced by career length and indexed earnings. The framework can be favourable for long careers, and EU coordination rules can be helpful for internationally mobile professionals by aggregating career periods across countries for eligibility. At the same time, the growing emphasis on supplementary and individual solutions reinforces the value of structured, ongoing planning, especially where career paths are non-linear.

Across countries and systems, one lesson is consistent: retirement outcomes are shaped by cumulative decisions

Spain: a strong public system, with limits on supplementation

Spain blends a main public pension, based on Social Security contributions and earnings history, with optional supplementary arrangements. The ability to enhance retirement outcomes often depends on whether additional savings are available through employer-sponsored options and personal planning. Where supplemental mechanisms are limited or capped, building a clear savings and investment roadmap becomes even more important for maintaining lifestyle goals in retirement.

United Kingdom: tax efficiency, evolving rules, and estate implications

The UK pension landscape combines the state pension with workplace and personal pensions. Defined contribution schemes dominate, and tax relief can significantly increase the effective value of contributions, particularly for higher earners, subject to annual allowances and tapering rules. Access ages are also changing, with the minimum pension access age scheduled to rise in 2028. A key forward-looking issue is that inheritance treatment is evolving: the report highlights planned changes that may bring unused pensions into the inheritance tax net (subject to exemptions such as spousal transfers). For many families, this makes retirement and estate planning more interconnected than before.

Brazil: public pillars under pressure, private solutions gaining importance

Brazil’s system includes public pay-as-you-go elements and a growing complementary private pillar. The 2019 reforms introduced retirement ages and contribution thresholds, but demographic and fiscal pressures mean that maintaining living standards may require additional private savings. Complementary solutions offered by regulated providers can provide features such as tax deferral and beneficiary structuring, reinforcing the role of long-term, intentional planning.

United Arab Emirates: a dual system where legal details matter

The UAE’s retirement landscape differs sharply for Emirati nationals and expatriates. Nationals participate in a mandatory pension framework, while expatriates typically rely on end-of-service gratuity and voluntary savings. The report also highlights an often-overlooked dimension for women’s long-term security: the UAE doesn’t apply a default marital property regime. Without formal documentation, shared financial or non-financial contributions don’t automatically create joint ownership. In practice, this can increase vulnerability in scenarios such as divorce or bereavement, making advance planning, asset structuring, and clear documentation especially important.

The earlier you start, the more options you have

Across countries and systems, one lesson is consistent: retirement outcomes are shaped by cumulative decisions. For women in particular, the silent gaps created by part-time work, interruptions, and uneven pension participation can widen over time, but they can also be substantially reduced with early action and regular review.

For women, the silent gaps created by part-time work, interruptions, and uneven pension participation can widen over time, but they can also be substantially reduced with early action and regular review

This article offers a snapshot of the insights in our International Women’s Day Special Focus. The full report includes a deeper, cross-country comparison, and practical guidance designed to help you navigate key milestones and build long-term financial independence with confidence.