Globally, less than a quarter of women workers believe they are on course to achieve their retirement income needs. A new report provides actionable recommendations to put women at the center of the solution.
Entitled The New Social Contract: Achieving retirement equality for women, the report finds that the persistent gender pay gap coupled with traditional societal norms and gender roles are placing women at a disadvantage in terms of saving and planning for retirement.
The findings of the report are based on an annual survey of 15 countries spanning Europe, the Americas, Asia, and Australia. It is a collaboration between Aegon Center for Longevity and Retirement (ACLR), and nonprofits Transamerica Center for Retirement Studies® (TCRS) and Instituto de Longevidade Mongeral Aegon.
Women today are better educated entering the workforce than any other time in history. However, parity in education is not translating into equality in employment. This puts women at a disadvantage throughout their careers and at risk when it comes to achieving retirement security, Mike Mansfield, Program Director at the ACLR.
Women's retirement readiness is stubbornly low
The report finds that globally only 21 percent of women workers believe they are on course to achieve their retirement income needs. And, only 26 percent of working women across the globe are extremely or very confident they will be able to retire with a comfortable lifestyle.
"Women are at a disadvantage throughout their careers and at risk when it comes to achieving retirement security" - Mike Mansfield, Program Director at the ACL
The Aegon Retirement Readiness Index (ARRI) measures preparedness on a scale of 0 to 10. In 2019, women workers globally achieved a low ARRI score of 5.8, up from 5.5 in 2014.
With the exception of the UK and Germany, women in all other European countries in the survey, as well as Canada, Australia and Japan, score below average.
Aegon Retirement Readiness Index
The life course of women fundamentally differ from those of men. Societal norms and expectations, like marital norms, childbearing, family responsibilities, and caregiving responsibilities, often create very real barriers for women and their ability to be self-reliant and prepare for their long-term financial security. Women are more likely than men to take extended periods of time out of the workforce, thereby limiting both their ability to save, and foregoing the wider benefits that can come with employment.
The report provides actionable recommendations outlines a holistic approach to retirement planning based on these five fundamentals for retirement readiness: