Gender Inequality In Pensions

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Why worry about gender inequality in pensions? Economic independence It is empirically known that women usually have lower pensions than men. To understand this we must understand that pensions are “the old age sequel of the earning gap”, and play an important role for economic independence of women. It is assumed that pensions are made to ensure the same standard of living in old age, otherwise the pension system would be failing. However, women fear for their economic independence when they reach retirement and retirement could mean a loss of freedom for women. This is because pensions are mostly not based on unpaid work. Thus women who have dedicated their live to the household will not have their own recognition when retirement comes and…show more content…
Conceptual distinctions Two ways of seeing pensions: o As a way to save money for retirement (that is as a stock). o As a social policy to cover needs. Distinction between: o Outcomes that are due to responses to existing incentives. o Incentives and outcomes that are not so justified or perhaps dysfunctional. The issue of unpaid work in the context of the household, work disproportionally done by women. o It does not generate direct pension contributions, but it has good externality to keep population healthy and it is important for the family. Why not leave it to the household? o The traditionalist position: benevolence and altruism. This position is based on “the male breadwinner model” and uses tools such as supplements by a married person’s or family bonus. Nevertheless, this household solution only makes gender gap bigger. This question is tested in two situations: o Dissolution of the household. o Death of one spouse. Will pension gender inequality simply go away? 1. If women’s careers and working lives become more like men’s, gender inequalities will go…show more content…
Assume that women tend to show gaps in their contribution history and compensate them. Two realities: o The reality of women assuming most of the unpaid work inside the family. o Gender roles in the economy and society. Transition issues: What to do with current gender gaps? o Citizens’ pension. o Raising smaller pensions. PART 2. THE GENDER GAP IN PENSIONS Pension system coverage and relative pension generosity: The difference between them is that the second one is a pension gap between men and women but only among those who are entitled to a pension. Some important definitions: o The coverage gap: The extent to which more men than women have access to the pension system. o The pensioners’ pension gap: or the pension gap. The difference in pensions excluding non-pensioners. o Overall Gender Pension gap: referring to those over the age of 65. o Central Gender Pension gap: referring to the more homogeneous group of people aged between 65 and 79. The pension gender gap in Europe: mapping diversity 1. Education. In many systems, pensions are linked to earning contributions and these are related to education. 2. Family status: Women are conditioned by un paid work home and sometimes it becomes a priority over their professional

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