Closing the retirement gap for elderly women who are at higher risk of retiring earlier than men due to various factors such as physical health issues, caregiving responsibilities, and career options, which may result in less savings than planned.
Elderly women face a higher risk of early retirement than elderly men, leading to a tendency to incur debt and experience a post-retirement income reduction of over 26%, according to statistics from all 38 member countries of the OECD (Organisation for Economic Co-operation and Development).
These gaps stem from multiple factors including work, physical health problems, and life responsibilities such as taking time off to be homemakers caring for children and family. As a result, women are more likely to pause or stop working earlier, which reduces their future savings.
It is projected that by 2050, the global population aged over 60 will more than double, from 1 billion in 2020 to 2.1 billion. This highlights the need to find solutions and promote equality to close the gender gap in retirement.
Several countries now recognize unpaid family caregiving as credited work towards pension benefits. This policy advantage enhances equality and benefits for elderly women or family caregivers.
Historically, social norms have encouraged women to retire earlier than men due to the aforementioned reasons. Currently, women's retirements often come with lower benefits and efficiency, potentially leading to financial insecurity in old age.
Therefore, supporting policies that allow women to work or remain in careers longer can benefit organizations and increase their life security, since women tend to live longer and have longer working lifespans.
Policies that are considerate of women with caregiving duties aim to provide more equitable benefits. Such policies may encourage elderly women to make bolder decisions and improve their financial planning.
Although women's access to employment has become more equal, some countries still maintain norms and customs that cause disparities. Closing these gender gaps and creating opportunities is a valuable way to improve post-retirement quality of life.
The existing problems arise from past societal norms and customs. Reducing inequality is a starting point to narrowing age and gender gaps, especially as our world now has advanced technology and changing ideas that can help resolve these issues.
Source: worldeconomicforum