According to new research from “The Mercer CFA Institute Global Pension Index Report,” the U.S gender gap in pensions lies at 34 percent. Across the rest of the world, the average gap was around 30 percent. On average, women live longer than men, meaning the pension gap can compound over time.
Ms. Franklin argues that this disparity is in part due to the pay gap, meaning women already earn less, so have less to be invested and saved through the pension system. She also argues that the less linear career paths of women, filled with part-time jobs and time off for care responsibilities, often don’t align with eligibility requirements for retirement systems.
To combat the problem, Ms. Franklin argues that retirement systems shouldn’t penalize workers for leaving the workforce to care for others and governments should make affordable child care accessible to all.
Canada had a lower-than-average pension gap at 24 percent, in part due to a policy that allows women to gain pension credits for being the primary caregiver to a child under the age of 7. Ms. Franklin argues that such policies could help close the gap and lift women out of poverty during retirement.
“The gender gap in retirement benefits does not grab headlines in the same manner as the pay gap, yet the issue remains no less urgent. And it needs fixing before even more women face poverty in retirement,” Ms. Franklin said.
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