We are living in the 21st century, and there are still places where the gap between men and women has stayed the same. The gender pension gap in Europe has stayed at 40% for the last five years as women receive less pension than men. Besides that, women in Europe also earn 16% less than men.
Here is everything you need to know about this gender pension gap.
The Reasons For The Gender Pension Gap
Unfortunately, many reasons contribute to this gap. Some of these include:
- Impact of women reducing work hours or taking a break from paid employment to take care of children or family
- The gender pay gap
- Inequality in terms of the average level of state pension that is given to women and men
- Indirect gender discrimination stems from the pension system. That includes the exclusion of women from being enrolled automatically into a pension scheme
While there are many reasons, these are the top reasons due to which the gender pension gap keeps on widening. Women are facing the brunt of inequality in Europe and some serious reforms need to be made if the landscape has to change.
The Gap Between Women And Men
According to a report, women will have to work forty years more than men if they want to create the same retirement financial pot. Here are some statistics and data that explain the gap between women and men all over Europe:
- A woman that is 20 years and over can be expected to have £100,000 less in her retirement savings as compared to a man in the same age bracket
- A female saver can typically save over £2,000 each year for the first fifteen years of her career. The same figure is £3,300 for a male saver
- The median salary for a young female is £23,700 while it is over £26,000 for a young male
- 46% of women in their 20s save 12% of their income, while 56% of men save the same percentage of income
Women have been facing many such challenges for a long time when it comes to saving for their retirement. Because of the pandemic, women have been hit the hardest, and their challenge of reaching retirement and income parity has increased. On the other hand, childcare costs are high and caring responsibilities have also increased.
These factors during the pandemic have lowered their contributions even further and it has put a significant dent in their pension pot. If Europe wants to lessen this disparity between men and women, they will have to create many systematic changes that include women just as much as men.
That is everything you need to know about the gender pension gap between women and men. While we don’t expect changes to happen in a day, progress can still be made to help young women have a retirement that is just as comfortable as men. It is a long journey, but one Europe needs to take to achieve equality.