Pensions: women will not earn as much as men before… 2060

THE ECO SCAN – Inequalities between men and women in retirement are decreasing but are not going to disappear. In fact, even in 2060, the difference in pensions received will still be “significantly” large.

Women work on average up to 62.5 years. Against 61.9 years for men. Despite everything, they retire with fewer quarters than them: 150 quarters against 158 ​​(all plans combined). They receive lower pensions… by 40% than those of men: on average 993 euros per month, against 1,642 euros for men. Even if we take into account all the measures aimed at balancing the differences between the sexes (reversions, bonuses, etc.), the income gap between men and women is still over 25%.

(), in 2030, this gap between men’s and women’s pensions should still be 20%! And by 15% in 2050. “The pension gaps would continue to narrow in the future”, but would remain “sensitive” by 2060, can we read in a short sentence of the big report of the COR. In other words, even beyond 2060, gender inequalities in retirement will still exist. Why? Because today’s average pension reflects the inequalities in income and career between men and women over the past 30 or 40 years. Inequalities in the labor market which persist, and which will continue to imply inequalities with regard to retirement in the next 30 to 40 years.

Persistent inequalities in the labor market

In France, . Even in terms of hourly wages, the gap is 16%. And for equal working hours and skills, the gap remains around 9%. “Women have a lower activity rate than men and more often work part time”, explains, lecturer at the. “They are over-represented both in relatively low-paying sectors and jobs and in lower hierarchical levels. This double segregation may correspond to a deliberate choice on their part, but this choice is also influenced by the prevalence of gender stereotypes ”, which grow. “Women also experience more career breaks, mainly related to their family situation,” continues the specialist in inequalities between men and women. In addition, the French tax system contributes to these inequalities between the sexes: the marital quotient discourages the participation of women in the labor market.

Women are overrepresented both in relatively low-paying jobs and in lower hierarchical levels

Antoine Bozio, Lecturer at EHESS

In the end, women still have to work later than men to hope to receive a full pension. Note, however, that this is a trend that is fading: with the improvement of women’s careers over the generations, the length of women’s careers, which represented 90% of that of men for the generation born in 1942 , is expected to reach almost 100% from the generations born in the 1960s.

Inequalities in retirement: insufficient compensation

The pension system has long tried to correct these imbalances. .

• Reversion

Most corrective measure: reversion. This is the pension paid to the surviving spouse in the event of the death of his partner. It is women who benefit most often. But, “some countries such as Denmark or Sweden have removed survivor pension systems, considering them obsolete with the development of separations and divorces,” notes Antoine Bozio. They have chosen to promote the professional activity of women by increasing the financial incentive over the entire life cycle.

• The increase in the insurance period

There is a mechanism which aims to compensate for the “gaps” in the professional life of women: the granting of four terms for each child, reserved for the mother, plus four others which can be shared with the father. This is called the duration of insurance supplements (MDA). Problem: the calculation of pensions being made on the 25 best years, it reflects a reduced reference salary, not compensated by additional quarters provided by MDAs.

• 3rd child: a 10% increase in pensions

There is also a 10% pension increase from the third child, valid for women… and for men. Suddenly, men receiving higher pensions, this device in fact widens the inequalities. All at a cost of 5.7 billion euros,. For Antoine Bozio, this device does not promote fertility and does not benefit families (beneficiaries generally no longer have dependent children). “It would be wise to gradually remove the child pension subsidies and reallocate the corresponding expenditure towards increasing the number of places to welcome young children, places in crèche for example,” he suggests.

• Aid to the most disadvantaged

The solidarity allowance for the elderly (formerly the minimum old age), granted to people over 65 whose resources are below a certain level, and the “contributory minimum” (or guaranteed minimum for civil servants) – which corresponds to a minimum pension amount for those who have contributed on the basis of very low wages -, are clearly two measures which benefit women more.

In the end, even if all these different measures are taken into account, women still continue to receive a pension that is a quarter lower than those of men. As long as inequalities in the labor market persist, those between retirees and retirees cannot disappear. Of course, women live longer. But here again, the COR qualifies: women, who have a longer life expectancy than men, in fact have four to five years more pensions than men, but if we look only at years spent in good health. or without disability, the gap is reduced to one year.