The Gender Gap in Pensions: Differences Between Generations

Abstract

Over successive generations, womens participation in the labour market has risen and their career breaks have become less frequent. The gender wage gap has narrowed. The time spent in education has increased. These socio-economic factors largely explain the reduction for future generations of the current gender differentials in pension levels and retirement ages. Nonetheless, the gender pension gap should remain significant. Men of the 1965-1974 generations retiring from the private sector should receive a pension that is more than 50% higher than womens. Although women are expected to participate more in the labour market, they often work part time and the gender wage gap is expected to remain significant. Changes in retirement system rules will influence future trends in pension levels. The gap between womens and mens pensions would have narrowed much more in future if the 1993 and 2003 reforms had not been implemented.Pensions, Gender Pension Gap, Microsimulation, Pension Reforms