Gender gap in pensions

For many women, reaching retirement age does not mean, as it should, a well-deserved rest after decades of work, but rather the entry into a new stage of economic insecurity. Our pension system is, in essence, contributory: it is paid based on contributions. This means that if their work histories have been short, discontinuous, or with low wages, the pension will be lower. And this is precisely the case for many women who are currently over 65.

On average, these women have accumulated fewer years of contributions, and when they have worked, it has often been part-time or in sectors with lower wages. This means that the current coverage rate (i.e., the percentage of women receiving a contributory pension) is 27 percentage points lower than that of men. Furthermore, the average retirement pension for women is 34% lower than that of men. This difference is not anecdotal: it represents a deep, persistent inequality that can be avoided if the right tools are in place.

The gender pension gap is largely a reflection of a labor market that has penalized, and still penalizes, motherhood and caregiving. Although public policies have made progress, such as equating paternity leave with maternity leave, the reality is that childcare still falls very unequally on women. Data show that women reduce their hours, forgo promotions, or temporarily leave their jobs when they have children. Men, on the other hand, generally do not suffer workplace penalties for being fathers.

Added to this is a growing and little-addressed factor: caring for the elderly. With an increasingly aging population and an underfunded care system, families bear much of the burden of this caregiving. And, within families, it is predominantly women. Women over 50 are the primary caregivers for dependent elderly people, a responsibility that negatively affects their careers and, therefore, also translates into lower pensions. This reality, added to the delay in the age of having children, represents a double penalty for the so-called sandwich generation, caught between raising children and caring for parents.

Reducing the gender pension gap requires addressing its structural causes. First, it is necessary to facilitate the balance between work and family life with strong public policies. Investment in universal, free early childhood education for children from birth to two has been shown to have a positive impact on female labor force participation and fertility, in addition to improving child development, especially among the most vulnerable children.

Second, it is necessary to develop a public network of care services for dependents. We cannot continue to delegate this responsibility to women, with the cost this entails for their career paths and future pensions. And, finally, we must continue to advance shared responsibility within households. Equal and mandatory paternity leave is a key tool, but it is not sufficient. We must transform the social norms that continue to associate caregiving with the female role.

The gender pension gap is not a problem of the past or an inevitable consequence of individual decisions. It is the result of decades of unequal allocation of responsibilities and opportunities, both in the workplace and at home. If decisive action is not taken, these inequalities will be passed on to future generations.

Moving toward a fairer and more sustainable pension system inevitably requires ensuring that everyone can contribute on equal terms. Only in this way can we ensure that retirement means beginning a dignified and secure life for everyone. Because pensions not only reflect our contributions, but also how we have lived and, above all, how we have been treated.