Men, women and pensions

It is an empirical fact that women in most, though not all, developed countries receive lower pensions than men. That observation is confirmed in the form of a statistical generalisation, rather than a rule across the EU member states. It is also true to say, though perhaps with less confidence, that pensions tend to be more unequal between men and women than other forms of income accruing to individuals, such as income from employment. This report first places this finding into context and then attempts to make sense of the patterns of pension gender inequality across space and over a number of dimensions, such as income distribution, education or marital status. Why should the mere fact of gender imbalance in one particular form of income be of especial worry? After all, insofar as pensions enter into household income, that inequality is already captured by our concern about social inclusion. In other words, if low pensions lead to lower command over resources and hence to a greater risk of poverty or social exclusion, our statistical 'early warning systems' should already signal the existence of an issue. To examine pension inequality between men and women as an issue additional to social inclusion, we must be concerned about something that is distinct and different from income inequality. The key lies in the fact that pensions accrue as a legal title to individuals and cannot be alienated from them. Though they certainly add command over resources, this command is tied to a person; it follows her as of right and can be exercised without reference to others, whether they are members of her close circle or not. So, the added dimension that justifies separate examination of pension inequality is that of economic independence.