The Gender Pension Gap

Transcription

1 The Gender Pension Gap The notion and the indicator MISSOC meeting in RIGA 5-6 May 2015

2 CONTENT EU28 Gender Pension Gap (GPG) 2012 Evolution of notion and indicator Importance of notion and indicator Character of the GPG Indicators of the GPG Drivers of the GPG Will present GPGs disappear with earlier gender regimes in employment? How can the GPG be reduced?

3 Gender Gap in Pensions, 2012 Inner vs outer pension gap Huge differences across Member States

4 Evolution of GPG as notion and indicator Notion and measurements of GPG developed in pioneering study of GPGs in DE Study also compares DE results with GPGs in other EU MS DE peer-review on notion + measurement of GPG 2011 DG JUST ask its European Network of Gender Experts (ENEGE) for study of GPG in EU, results 2010, 2011, 2012 First ENEGE results mentioned in 2012 PAR EC negotiates & prepares for GPG inclusion in 2015 PAR ENEGE agrees GPG indicator improvements with ISG GPG in separate chapter and country profiles of 2015 PAR

5 Importance of GPG as notion and indicator Gender equality in Treaty, mainstreamed in all EU policies Big GPGs violate the aspiration for gender equality Women constitute 2/3 of pensioners - GPGs indicate pension entitlement rules not sufficiently geared to women s average life course SPC/ISG has decided to use it in the 2015 PAR Improving gender equality priority of present EC LV presidency is preparing Council Conclusion on the Gender Pension Gap for the June EPSCO these are likely to call for a continuous monitoring of the gap and for addressing it MISSOC must contribute its part

6 Character of the Gender Pension Gap Not about discrimination but inequality in pension outcomes Not like Gender Pay Gap where discrimination enters Not to be confounded with poverty risks, i.e. AROP(E) Primary problem Not the existence of a gap but its magnitude: Grossly lower pension outcomes for women As an aggregate indicator the GPG forms the start of a deeper analysis of constituent factors and trends Violates women s equal opportunity for Economic independence in old age

7 GPGs versus Poverty risks for women 65+, 2011 Data source: Eurostat (at-risk-of-poverty rate), ENEGE (Gender gap in pensions)

8 Gender Gaps in Pensions versus in Poverty, 2012 Data source: Eurostat (at-risk-of-poverty rate), ENEGE (Gender pgap in pensions)

9 GPGs and Gender Gap in Annual Earnings, 2012 Both the Gender Gap in Pensions and the Earnings Gap are based on SILC 2012; the GGP refers to pensioners aged

10 Indicators of the Gender Pension Gap The GPG can be measured in different ways Headline indicator agreed with ISG: Inner GPG for Initial indicator: Outer GPG for 65+ Coverage (several women are without pension income) Including or not survivor s pension as derived right The GDP is a snapshot of a combination of factors that are moving Important to look at trends and direction of drivers

11 Gender gap in pension coverage rate, Data source: ENEGE (Gender gap in pensions)

12 Trends in GPGs over time, EU27 Source: ENEGE (Gender gap in pensions)

13 Gender Pension Gap Indicators in summary, 2012 Source: ENEGE (Gender gap in pensions)

14 The GPG results from the combined impact of gender differences in employment and the design of the pension system Earnings-related contributory pension schemes tend to mirror the triple gender gap in employment in: Pay, Drivers of the Gender Pension Gap Working Hours and Duration of working life The more pension entitlements are defined contribution & private the more women will be disadvantaged Universal basic pensions, minimum & guarantee pensions, as well as care crediting mitigate gender differences in employment

15 Just a disappearing legacy of past gender regimes? Will the GPG simply reduce as female cohorts with higher employment rates retire and disappear when they constitute the stock? To some extent but while smaller the triple gender gap in employment continues notably for segment of women Meanwhile some trends in pension system developments will increase disadvantage of women: DB, and greater reliance on occupational and third pillar schemes Other trends such as wider coverage, greater access to minimum and guarantee pensions and care-crediting will improve pension outcomes for women

16 How can the Gender Pension Gap be reduced? Gender equalising pay, raising the full-time rate of women and reducing their career breaks can bring major gap reductions in earnings-related schemes But this will require determined policy efforts over the medium to long-term Changes in pension rules and pension systems can have a much faster effect but also take time to work through Universal basic pensions, better access to minimum & guarantee pensions, as well as motherhood and care crediting mitigate the impact of gender differences in employment therefore they are important

17 Gender Gap in Pensions, 2012 Inner vs outer pension gap Huge differences across Member States

18 Next steps for 2015 PAR with GPGs Finalisation of analysis All sections will be revised by an editor Final meeting of SPC-AGE on 19 May Consultation of SPC-ISG on remaining 'data' sections Discussion at SPC meetings in May and June Adoption of 2015 PAR at SPC September meeting Main Policy Messages including on gender pension gaps for the October EPSCO