25 Aug 2008

Gender Difference in Retirement Income and Pension Policy

Simulating the Effects of Various DB and DC Schemes

Michele BELLONI / Elsa Fornero

0
Download Publication

1623 Downloads

European Network of Economic Policy Research Institutes (ENEPRI) Research Report No. 59  / 21 pages

This analysis evaluates the relative pension positions of men and women, under different characterisations of their respective working lives and pension designs. Both Defined Benefit (DB) and Defined Contribution (DC) schemes are considered, as well as a few variants of their basic pension formula, each exemplifying a stylised normative framework.
Not surprisingly, the working career is the most relevant factor in determining the relative retirement income of women with respect to men; pension systems can compensate, but only up to a point. As for a comparison between DB and DC systems, taken without explicit redistributive measures, the latter can fare better than the former in providing a more equal distribution of retirement income between men and women, because it removes the greater return to steeper earnings profiles, more characteristic of men. The introduction of a minimum pension provision in the DB system improves the relative position of women with discontinuous or poor careers, while, in DC systems, a formal recognition of women’s care activities through pension credits seems less effective than neutralising their longer life expectancy in the determination of the pension benefits using unisex longevity tables.

Related Publications

Browse through the list of related publications.

A renewed EU approach for Jobs and Skills

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

Competition Policy and State Aid: Defining a sustainable path for Europe’s recovery

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

Healthcare and Pharmaceuticals

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

The Digital Transition

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

Strategic Value Chains

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

European Green Deal

Towards a Resilient and Sustainable Post-Pandemic Recovery Working Group Report of the New Industrial Strategy for Europe Task Force

Basel III Finalisation

The impact on EU banks and the real economy across scenarios

Managed Expectations

EU Member States’ Views on the Conference on the Future of Europe

Digital labour platforms in the EU

Mapping and business models