Retirement should be a time to enjoy the rewards of years of hard work, whether it’s traveling, spending time with family, or simply relaxing. But for many women, the financial gap in pensions is hard to ignore. Even with progress on gender equality, women are still retiring with far less than men. It’s time to ask: why is this happening, and how can we fix it?
In this piece, we’ll explore the gender pension gap, why it persists, and what steps you can take to address it for yourself.
When we talk about the gender pension gap, it’s one thing to hear about it. But when you look at the numbers, the issue becomes much clearer.
Take Switzerland. In 2022, the average pension for women was CHF 36,433, while men received CHF 52,672, a gap of CHF 16,239, or 30.8%. This isn’t simply about personal savings choices; it’s a structural issue. And the trend is consistent across many countries.
In the UK, for instance, women retire with around £100,000 less than men. That’s a huge difference, and it’s not improving. Meanwhile, in Germany, women receive 46% less pension income than men, often due to factors like part-time work and extended parental leave.
This is a global issue, but it’s one that individuals can take action on, if they know how.
Why does this gap exist in the first place? Several key factors contribute:
The gender pension gap is more than just numbers. It reflects inequality that has long-term consequences for women in retirement. A smaller pension means a lower quality of life, a greater reliance on state support, and a higher risk of poverty in later years. This gap is more than an issue of financial security; it’s an issue of fairness.
The good news is there are steps you can take to help close the gap, both personally and through systemic changes.
The gender pension gap is a significant challenge, but it’s one we can begin to address today. By understanding the reasons behind the gap, taking proactive steps, and seeking advice when needed, you can work toward a more secure retirement.
If you’re unsure where to begin, or if you’d like more personalised guidance, don’t hesitate to reach out. Our team can help you assess your pension and develop a plan that works for you.
Need help understanding your pension plan or closing the gap in your retirement savings? Schedule a consultation with our experts today, and we’ll work with you to build a strategy that secures your financial future.
Carla has spent the last 15 years helping expatriates to manage their finances effectively, and has been learning, to some extent first hand, of some of the challenges faced when living abroad. In particular, she has extensive knowledge of the interplay between the UK, French and Swiss systems, having lived and worked in each of these countries. Carla has built her reputation as a trustworthy adviser to individuals looking to plan for their futures, and her high level of client retention is a testament to this.
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