pension gaps between women and men remain very significant

Discussions resume between the government and the social partners on Monday 7 November. Among the topics addressed for this second round of consultation on pension reform: the persistent inequalities between the retirement pensions of women and men. They are even more important than for wages.

Retired women receive a pension 40% lower than that of men. The average gross pension for a woman is 1,150 euros, while that of a man is 1,931 euros, according to the most recent statistics for 2020 from the social ministries. It should be noted that the gap between men and women is reduced when survivors’ pensions are taken into account. This is the part of the deceased spouse’s pension received by widows and widowers. 9 times out of 10, it is women who receive a survivor’s pension. The male/female gap is then reduced to 28%, when the reversion pensions are included.

Wage inequalities and choppy careers can explain these gaps of 28% to 40%. A woman whose salary has been lower than that of a man throughout her career has contributed less heavily than a man and this is reflected in his retirement pension.

In addition, women are penalized by periods when their professional career is put on hold, when they have children. The contribution period is shorter than that of men and this is also reflected in the retirement pension. This is particularly true in the private sector: women in the public sector have less fragmented careers than in the private sector.

In 2004, the difference between men’s and women’s pensions was 50%. Which means that women have gained 10 points between 2004 and 2020. That’s ten dots in 16 year. This progression is mainly explained by the fact that since the post-war period, more and more women have had a professional career with better qualifications. This has positive consequences for pensions.