Privatisation and pensions: what does this mean for women?

Abstract

This paper considers the relationship between gender and private pension provision. It provides a brief history of private pensions before considering the implications of pension policy on women's private pension situation under New Labour and, briefly, the coalition government. For instance, there has been an emphasis on neoliberal concerns of private saving and individual responsibility as a means of reducing expenditure and encouraging long-term sustainability. The paper suggests that the focus on individual responsibility in pension saving leaves many women ill-equipped to save and dependent on means-tested pension provision, largely as a result of intermittent work histories.

Gender and active ageing in Europe

“…Moreover, approximately 30 % of women with caring responsibilities are economically inactive or work on a part-time basis due to lack of care services (Leschke 2011). Given the earningsrelated nature of most pension schemes, the impact of caring extends far beyond employment and into older age (Foster 2011). Care credits are one way of ''compensating'' women for periods of unpaid care, but they do not account for wage penalties associated with time out of employment and largely apply to first/second pillar pension provision.…”

“…For instance, frequent features of women's employment such as career breaks, part-time work and low pay are not sufficiently taken into account (Ginn 2003;Foster 2011). The reconciliation of work and care responsibilities through family friendly strategic priorities is likely to boost women's position in older age (Frericks et al 2009).…”

“…For instance, the promotion of preventative medicine, lifestyle, diet, and consumption patterns are increasingly influential in determining ill-health at all ages (ActivAge 2005), or pension credits for caring, disproportionately performed by women, can help to prevent poverty in older age (Foster 2011). Furthermore, viewing policy through a gender lens and acting accordingly may serve as a preventative approach.…”

Women's pensions in the European Union and the current economic crisis

“…However, ensuring that pension spending remains sustainable, while reducing pensioner poverty, represents an enormous challenge. Policy needs to recognise women's diverse life course experiences while encouraging women to, wherever possible, build up pensions in their own right (Foster, 2011). This also needs to consider whether individuals are retirees, close to retirement or expect to continue contributing to pensions for many years to come.…”

“…While the gap is smaller in other countries, it is almost exclusively to the detriment of women (Marin and Zólyomi, 2010). The gendered nature of retirement income evident throughout the EU relates to many women's experiences and opportunities to contribute to pensions throughout the life course (Foster, 2011;Ginn and MacIntyre, 2013). Gender inequalities are affected by the provision of care, largely carried out by women, its impact on employment patterns and subsequently women's greater likelihood of reaching retirement with inadequate pension resources (Vlachantoni, 2012).…”