Research Finds Gap in Pension Payment Between Genders, Favoring Men Over Women by 52% - Research findings indicate that the average wage for men exceeds that of women by approximately 52%
In Germany, the gender pension gap continues to persist, a trend mirrored in many countries worldwide. A recent study conducted by GDV and Prognos has shed light on the various factors contributing to this disparity, revealing that employment biographies, part-time work, and care work play significant roles.
The study found that employment biographies in Germany reflect traditional gender roles, with men typically having more continuous full-time employment, while women often face interrupted careers due to family responsibilities. This gap in employment continuity affects pension contributions and benefits, contributing to a lower pension for women.
Part-time work is also more prevalent among women in Germany, leading to lower pension contributions and benefits compared to men. Although policies aim to increase women's participation in the workforce, the predominance of part-time work among women still hampers pension equality.
Care work, predominantly undertaken by women, is unpaid and thus does not contribute to pension entitlements. This exacerbates the gender pension gap, as women often have to balance paid work with unpaid care responsibilities, further reducing their pension contributions.
Over the past decade, there have been efforts to address these issues in Germany. Women's employment rates have increased significantly, narrowing the gender employment gap. While part-time work remains common among women, increased participation in the workforce has somewhat mitigated its impact on the pension gap. The challenge of balancing paid and unpaid work continues, with only a slight increase in the share of people providing long-term unpaid care who are also engaged in paid work.
The study also calls for better work-life balance, suggesting that childcare options need to be expanded. The authors of the study also advocate for fathers to participate more fairly in childcare to help alleviate the burden on women.
Germany's pension system, which includes automatic pension sharing upon divorce, aims to reduce pension inequalities. However, addressing the root causes of the gender pension gap, such as unequal working lives and care responsibilities, remains a challenge.
The deputy GDV CEO, Moritz Schumann, stated that this leads to women having less financial security in old age than men. The gender pension gap in 2023 was 491 euros, with the average net pension amount for men being 1149 euros and for women being 658 euros.
As we strive for equal rights, it is essential to acknowledge that the current situation represents a significant disadvantage for women. The persisting gender pension gap underscores the need for continued efforts to address the underlying issues and achieve true gender equality in Germany.
- To tackle the persistent gender pension gap in Germany, the study recommends implementing policies that focus on vocational training, encouraging women to engage in various sectors without fear of interrupted careers.
- Addressing the health-and-wellness aspect, the study suggests that improving work-life balance through expanded childcare options can help alleviate the burden on women, allowing them to pursue vocational training and full-time employment without compromising family responsibilities.
- In light of the equity concerns in financial matters, the study proposes that women be offered more opportunities for vocational training to attain higher-paying jobs and ensure their financial security in their golden years, reducing the gap in pensions between genders.
