Marriage is the greatest threat to your own pension - German Women Face 1,100 Euro Pension Gap Due to Gender Inequality
In Germany, married women face a significant pension gap of about 1,100 euros per month compared to their male counterparts. This disparity is driven by various factors, including career interruptions for childcare, part-time work, lower wages, and longer contribution periods for men.
The gender pay gap, with women earning 16 percent less than men for full-time work, also contributes to the pension gap. On average, men receive a net old-age income of 2295 euros, while women get only 1306 euros. Marriage itself can exacerbate the issue, with single women having slightly higher incomes than single men, but married women earning significantly less than married men.
The pension gap is more pronounced among older retirees, standing at 43 percent on average. However, among younger retirees aged 65 to 70, the gap narrows to just 32 percent. Geographically, the pension gap is smaller in eastern German states (21 percent) compared to western states (47 percent).
Women's professional activity is often hindered by marriage and childcare responsibilities, increasing the risk of poverty in old age if the relationship doesn't last. They tend to work in lower-paid jobs, have lower qualifications, and take career breaks, leading to lower pension contributions. Additionally, women have less disposable income and save less, resulting in lower private savings for retirement.
Addressing the pension gap requires tackling the underlying issues of gender pay disparity, career interruptions, and lower savings among women. Policymakers should consider measures to promote equal pay, support women's professional development, and encourage savings. Marriage and childcare policies should also be reviewed to ensure they do not disproportionately disadvantage women in retirement.
