The Gender Gap in Pensions has been an issue for some time now, but it is not a new problem. There are several factors that contribute to this issue, including earnings during one's working life. Many countries are gradually closing the gap between men and women, but this progress is slower in some countries. As shown in Figure 3, the gender pay gap in pensions is narrowing in most countries. It currently stands at 14.1%, down from 16.4 percent in 2012.
Gender gap in pension savings
There is a significant gender gap when it comes to pension savings. In 2017, 35 per cent of women were not saving for their retirement, compared to 22 per cent of men. This is a significant increase compared to the year before, when there was a gap of just 8 per cent. Women also earn less than men, and typically take more time off work to care for their children. However, there are ways that women can make the most of their pension pots and boost their retirement savings.
First, it is important to recognize that the gender gap in pension savings is often related to a lack of financial literacy. This gap is particularly pronounced in countries with low levels of financial literacy, such as Peru. For example, in Peru, a woman may earn less than a man in the same field, but still have less money saved for retirement than a man.
Second, men earn more per hour than women. These differences are also significant for the amount of pension savings that women can make. Moreover, men earn about 9% more per hour than women. These wage gaps make it difficult for women to save for retirement, which has negative effects on their future income.
Gender gap in pension entitlements
The gender gap in pension entitlements is a complex issue with several factors at play. First, the historical gender gap, which affects women more than men, plays a big role in this issue. Secondly, there is a difference in how much a woman earns compared to a man in different countries. Lastly, the lower employment rate for women is another factor in the gender gap. While the gender pay gap is a significant issue, it does not have to be a deterrent to achieving financial security.
According to the United States Bureau of Labor Statistics (BLS), elderly women receive less pension income than their male counterparts. In 1996, 34 percent of men aged 65 and older received pension income, compared to 18 percent of women. And while this gap has been closing in recent years, it still remains significant. Moreover, men are more likely than women to have a pension, but women receive half as much.
Some countries are taking steps to close the gender gap in pension entitlements. They are implementing policies to raise the retirement age and gender-balance pensions. For example, Denmark recently increased the pensionable age for both men and women. The United Kingdom is also extending the age at which women are entitled to a pension. While these changes are welcome, many countries need to do more to address the main drivers of the gender gap.
Women's economic and social biography with that of their husbands can overcome the gap in pensions
Compared to men, women have lower pension entitlements. In part, this is due to a higher poverty rate. However, it can also be due to different career paths and earnings. The gender pay gap is as high as 15%, according to Eurostat. This gap exists across all forms of economic activity.
If women could match their economic and social biography to that of their husbands, they would be able to achieve equal pension benefits in the future. Women often end up working longer to support their families and husbands. As a result, they tend to remain economically disadvantaged even when they have reached pension age.
The pay gap is still wide, however, and it is hard for women to close the gap by improving their own education. The pay gap is even wider for women of color than it is for white men. Despite the fact that women are better educated than men, they are still earning less than men in every occupation.
Marriage has two major benefits. One is that it gives women more time to remain in paid employment. The second is that it increases the probability of women staying in the labour market past pension age.
We are living in 2020, the era of massive transformation.
Then why not do what we have been saying for decades- “Empower Women”.Among conventional societies, women were expected to be dependent on her father, then her husband and later on her son.
And, it still prevails among some social groups.Today’s women are strong, they are self-sufficient.
They have a choice, a voice of their own.Yet, the glass ceiling is persistent, the gender pay gap remains and women have to pay pink taxes.6% of companies on the Fortune India 500 list are managed by women.According to the World Economic Forum, it would take 108 years to overcome the gender gap and 202 years to bring parity in the workplace!
Besides gender parity, today’s women need to centre their spirits to:Believe in themselvesRecognise their strengthsOwn their successA women empowerment coach can help!
The gender gap in Australia is still dominant and remains a serious workplace issue.
This gender equality policy covers what it is and provides guidelines for the professional standards required within your organisation.Watch out this video for more details.
