Women need to work 8 years longer for same pension as men

Women in Ireland would need to work eight years longer to retire with the same pension pot as men, according to new research.

The 2024 Gender Pension Gap Report from Irish Life highlights the pension inequality faced by working women and found a 36% gender pension gap.

The research identified two main drivers of this gap for working women: salary differences and time out of the workforce.

The report found that women’s salaries are, on average, 22% less than men’s.

European studies suggest that on average women spend 4.5 years less in paid employment than men, though in Ireland, that gap is wider at six years, according to Eurostat.

This is mainly due to maternity leave and family caring responsibilities.

These factors have resulted in significant differences in accumulated pension funds, according to Irish Life.

The data shows that the average age to start a pension is the same for both men and women and that men and women contribute comparable percentages of salary confirming that saving habits play no role in the gender pension gap.

The research analysed data from over 130,000 Irish Life defined contribution plan members.

“While the gender pay gap gets plenty of attention worldwide, the gender pension gap is not as well understood,” said Shane O’Farrell, Director, Employer Solutions at Irish Life.

“This is despite the gender pension gap being much larger and having a significant long-term impact.”

“The answer simply cannot be women continuing to work for eight more years while the men in their workplace retire,” Mr Farrell said.

Irish Life is calling for all stakeholders, including government, pension providers and employers, to focus on actions to reduce the pension gap for women.